The State Universities Retirement System (SURS) of Illinois has backed Long Wharf Capital’s latest US value-add real estate fund.

The pension fund said it has made a $40m (€37.3m) commitment to Long Wharf Real Estate Partners Fund VII.

Illinois SURS in the past made a capital commitment to Long Wharf Real Estate Partners Fund VI, a predecessor fund that raised $504m at its close in 2020.

Long Wharf Capital’s value-add fund focuses on US assets that can generate a net internal rate of return of 12% to 15% as it targets industrial, apartments, R&D and retail real estate assets.

Illinois SURS said it has also approved a $50m commitment to Brasa Real Estate Fund III, Brasa Capital Management’s new US opportunistic real estate fund.

Last year, Brasa raised $450m at the close of the predecessor Brasa Real Estate Fund II fund.

The latest fund will mainly invest in mid-market-sized multifamily and industrial assets worth between $5m and $15m in the west region of the US or Texas.

To read the latest edition of the latest IPE Real Assets magazine click here.