Illinois Firefighters’ Pension Investment Fund, Lombard, approved commitments totaling $400 million to open-end real estate and infrastructure funds.
The $8.8 billion pension investment fund’s board at its Aug. 2 meeting approved commitments of $250 million to CBRE U.S. Core Partners, an open-end core real estate fund managed by CBRE Investment Management; $80 million to KKR Diversified Core Infrastructure Fund, an open-end infrastructure fund managed by KKR & Co.; and $70 million to IFM Global Infrastructure Fund, an open-end infrastructure fund managed by IFM Investors, said William Atwood, executive director and chief investment officer.
IFPIF had issued two RFPs in May as it builds out its 10% target to real estate and 4% target to infrastructure for its long-term asset allocation.
IFPIF was created in 2019 following the signing of a law by Illinois Gov. J.B. Pritzker consolidating the investment management functions of hundreds of Illinois municipal firefighters’ pension funds.
The pension investment fund is currently operating under an interim asset allocation that consists primarily of passive equities and fixed income and is in the midst of implementing a long-term investment policy.
The board at its Aug. 2 meeting also voted to remain with the Principal U.S. Property Account, an open-end real estate separate account managed by Principal Global Investors, and increase its investment to $250 million. The pension investment fund originally invested about $210 million in the separate account in 2021.
That investment came about when investment consultant Marquette Associates noted that about 30 of the 296 municipal firefighters’ funds had exposure to the account.
By consolidating the portfolios into the new investment fund, IFPIF saved about $400,000 in fees, Atwood said in an April 2022 interview.
