Illinois Municipal Retirement Fund, Oak Brook, on Friday approved commitments totaling up to $675 million to real estate and private equity managers.
The $39.8 billion pension fund committed up to €100 million ($117 million) to Ares European Real Estate Fund V, managed by Ares Management, which invests in European residential, retail, office and industrial real estate, and up to $75 million to Artemis Real Estate Partners Fund III, a value-added opportunistic real estate fund. Also, up to $150 million each was committed in open-end core real estate to the Heitman America Real Estate Trust, which targets apartment, industrial, office, retail, and self-storage properties, and JPMCB Strategic Property Fund, a commingled fund managed by J.P. Morgan Asset Management that invests in high-income retail, residential, office and industrial real estate.
RFPs for both core real estate mandates were issued June 21.
IMRF also made additional commitments of up to $100 million to Buckhead Properties, a core real estate fund managed by TA Associates Realty investing in industrial properties, and up to €50 million to the Barings European Core Property Fund.
The pension fund had committed $50 million to the Buckhead fund in April 2015 and €25 million to the Barings European fund in August 2016.
Also, the plan is redeeming its $150 million investment in the Barings Core Property Fund, citing organizational reasons.
In private equity, up to $25 million was committed to Clearlake Capital Partners V, a private equity fund managed by Clearlake Capital Group that invests in software, technology, industrials, energy and consumer sectors.
As of Sept. 30, IMRF had actual allocations of 3.5% in alternative investments, including private equity, vs. its 6.4% target; and 5.4% in real estate, compared with its 8.8% target.
The commitments were approved Thursday by IMRF's investment committee.
Separately, the pension fund returned a net 3.85% for the quarter ended Sept. 30, vs. its custom benchmark's 3.27% return. As of Sept. 30, IMRF returned a net 13.37% for 12 months, 9.34% for five years and 6.19% for 10 years, compared to respective custom benchmark returns of 11.39%, 8.81% and 6.17%. All multiyear returns are annualized.