By Muskan Arora
The $54.9bn Illinois Municipal Retirement Fund is launching a search for a residential real estate strategy manager, as announced last week.
While, the system may consider a single or multiple strategy fund, it is seeking closed-end value-add and opportunistic U.S. residential RE funds.
Click Here for More Information
The pension plan anticipates allocating at least $50m to each strategy, as multiple managers will also be considered.
In terms of sector, the Illinois plan is not just limited to
residential, but also will consider affordable housing, workforce housing,
student housing, manufactured housing, single family build to rent, and senior
housing.
IMRF is focused on strategies that have at least 75% of
capital invested in residential properties with a “proven track record in the proposed
strategy and at least $250 million in AUM.”
Proposals are due on November 22, and the fund expects to
select a manager by February 21, 2025. The finalists will be presented to the
board a day prior to the final selection.
While selecting the manager, the fund will consider factors
including people, process, performance and pricing.
The fund will look out for stability and ownership of a firm,
clearly defined and repeatable investment strategy, documented investment performance
and fees.
The IMRF allocates 36.5% of its portfolio to domestic
equity, 22.3% to fixed income, 19.7% to international equity, 11.3% to
alternative investments, 9.4% to private real assets and 0.8% to cash and cash
equivalents.
