Illinois SURS plans major real assets push over the next five years

State Universities Retirement System (SURS) of Illinois is planning to make up to $2.2bn (€1.93bn) worth of real assets investments over the next five years.

In a board meeting document, the $19bn pension fund said it intends to set aside $450m over the next three years for stabilised growth and core investments and between $250m and $350m a year for the next five years for non-traditional growth/non-core.

The pacing plan was prepared by investment consultant Callan.

The pension fund’s real assets portfolio comprises real estate, infrastructure, farmland and timber.

Most of the capital will be invested in funds.

Illinois SURS recently approved an additional $30m commitment to Dune Real Estate Fund IV – a value-add fund that has asked investors for an extension to secure more capital – have initially committed $20m in December 2017.

Fund IV has a $1.25bn target and a $1.5bn hard cap.

The fund will target mostly US properties including residential, retail and industrial assets with execteds return of 15%-17% net and 18%-22% gross. The leverage on the fund can be as much as 75%.

Related images

  • Chicago, Illinois

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Now