Illinois Municipal Retirement Fund has made $100m (€92.4m) worth of commitments to Kayne Anderson Real Estate and Virtus Real Estate Capital-managed US funds, completing a residential real estate request for proposal it issued in October last year.
The pension fund said it has made a $50m commitment each to the Kayne Attainable Housing Fund I and the Virtus Real Estate Capital Fund IV funds.
Kayne Anderson’s Attainable Housing Fund is seeking to raise $500m, with a $750m hard cap, according to sources.
It will acquire and develop Class B residential properties targeting middle-market renters in high-growth US markets, employing both value-add and new development strategies. The fund’s assets include properties in Boston, Tennessee, Atlanta and New Jersey.
Kayne Anderson declined a request for comment.
Virtus Real Estate, which plans to raise $750m for its Fund IV, with a $900m hard cap, has so far secured $375m in capital commitments.
The fund targets a 17-20% gross internal rate of return and a 1.8-2.0x gross equity multiple, investing in both existing and new alternative housing assets, with 70-80% allocation to this sector.
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