The Illinois Municipal Retirement Fund has committed $285m (€267m) to three managers.
The US pension fund has placed $100m in Blackstone’s Real Estate Debt Strategies III vehicle and $75m with Artemis Real Estate Partners.
Illinois has also approved a €100m commitment to the Ares European Enhancement Partners II fund.
The fund believes the investments will help it reach its 8% strategic asset allocation to real estate, while also increasing diversification of its long-term real estate investment portfolio.
Blackstone’s US-focused Debt Strategies Fund III will aim to make investments in high-yield real estate debt generating equity-like returns.
According to its website, the fund will consider mezzanine debt, recapitalisations, legacy debt investments, listed equity and debt securities, and preferred equity.
The commitment with Artemis – a new relationship for Illinois Municipal – is structured as a separate account.
Illinois said it was planning to make annual commitments to Artemis, which has a manager-of-managers investment strategy.
Ares Management is seeking a total capital raise of $600m for Partners II, with a $900m hard cap on the fund.
Limited partners, which will invest in retail, office, residential and industrial, are projected to achieve an 11-14% gross IRR.
Ares will be investing in the UK, Germany and France.