Teachers’ Retirement System of Oklahoma has approved two real estate commitments totaling $200m (€170.7m), split equally between strategies managed by Ares Management Corporation.
The pension fund disclosed in a board meeting document that it has made a $100m commitment to the Ares Real Estate Secondaries Fund X fund and approved a $100m follow-on commitment to the open-ended Ares Industrial Real Estate Fund.
Ares is seeking $4bn for its US real estate secondaries fund, with the manager committing 1% of total capital as a co-investment. To date, Fund X has raised $2.5bn, including capital from associated co-investment vehicles.
Fund X will primarily target minority limited partner interests in value-add and opportunistic real estate funds across the US. The vehicle also maintains the flexibility to invest in joint ventures, non-traded real estate investment trusts and operating companies. The fund will also engage in recapitalisations and special situation structured transactions.
Fund X targets net internal rate of returns of 13% to 16% with a maximum leverage of 70%.
Oklahoma Teachers made an initial $100m commitment to the core-plus Ares industrial fund in April 2025. The fund, which currently holds a net asset value of $4bn, operates with a 32.7% leverage ratio and has no redemption queue.
Throughout the 2025 calendar year, Ares secured $845m in new capital for the fund. To date, approximately $3.7bn of the fund’s equity has been called, leaving a remaining balance of $236m.
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