Teachers Retirement System of the State of Illinois (Illinois Teachers) has approved a $300m (€280.5m) commitment to a distressed global real estate fund managed by Starwood Capital.

The investment made by Illinois Teachers to Starwood Distressed Opportunity Fund XIII Global, will be part of the $450m that the pension fund planned to invest in opportunistic real estate in the fiscal 2024 year ending 30 June.

Starwood Capital is targeting a $10bn capital raise for the fund focused on undervalued assets. The amount of capital currently secured by the manager is not yet publicly available.

As previously reported, the Starwood fund expects 45% to 55% of its investments in North America and 35% to 35% in Europe, with the potential for 0% to 10% of the investments being made in Asia. 

Chicago, Illinois

Source: Pexels

Chicago, Illinois

The fund’s strategy involves acquiring undervalued assets, taking public entities private, and forming investment platforms.

To read the latest IPE Real Assets magazine click here.