Teachers Retirement System of the State of Illinois has made its first-ever commitment to Covenant Capital.
The pension fund, investing through its real assets portfolio, said it has approved a $100m (€86m) commitment to Covenant Apartment Fund XII, a US value-add apartment fund.
Fund XI, a previous fund in the series, raised $748m at its close in January 2023. Covenant Capital targets a net internal rate of return between 16% and 18% for Fund XII.
Illinois Teacher, through its $12.7bn real assets portfolio, said it has also committed $200m to Blackstone’s Strategic Partners Infrastructure IV fund.
According to comments from Blackstone COO Jonathan Gray, the fund has now raised over $5bn.
Fund IV, which had a $4bn fundraising target, aims for returns in the mid-teens range. The fund expects to mainly invest in existing infrastructure funds on the secondary market by acquiring limited partnership positions. The fund focuses on assets in North America and Europe across the power and utilities, transportation and digital sectors.
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