Illinois Municipal Retirement Fund (IMRF) has committed €100m to Ares European Property Enhancement Partners III.
The pension fund confirmed to IPE Real Assets that it would be one of the initial investors in the value-add real estate fund.
Ares will pursue a strategy similar to those of its two previous European value-add funds.
Ares European Property Enhancement Partners II raised €665m by the end of 2016.
According to IMRF, the new fund will target industrial, office, residential and retail assets and target returns of 11% to 14%.
The pension fund has invested in previous Ares real estate funds, including Ares European Real Estate Fund V, an opportunity fund that raised €1.8bn last year.