Teachers’ Retirement System of the State of Illinois has expanded its emerging manager programme through new investments with Oak Street Capital and Exeter Property Group.

The pension fund is committing $100m (€95.2m) to Oak Street Capital Real Estate Fund IV and $40m to Exeter Industrial Value Fund IV.

The commitments represent a significant expansion of the programme. The pension fund currently has $79.4m invested with emerging real estate managers.

Oak Street Capital invests in net-lease real estate, a part of the market that US pension funds rarely invest in, according to industry sources.

Illinois Teachers has invested in the market before, committing $41.8m to Oak Street Capital’s previous fund.

There is some uncertainty as to whether the commitment to Exeter Industrial Value Fund IV will be accepted, since it has been oversubscribed for its $1.15bn targeted capital raise.

Illinois Teachers considers Exeter to be an emerging manager. The pension fund told IPE Real Estate that the company “fits within the TRS definition of emerging manager”.

It said: “Its last fund has not been fully realised and this is a first-time commitment.”

Other pension funds to seeking to join the fund include Texas Permanent School Fund and the New York State Teachers Retirement System.