The $20.83B Ohio Police and Fire Pension Fund has allocated $85M to the U.S. and Canadian real-estate market, signalling a renewed appetite for private assets.
At its Oct. 22, Board of Trustees meeting, the fund committed that sum to Blue Owl Capital Inc.’s Real Estate Fund VII (“Blue Owl VII”), which is a closed-end value-add vehicle focused on single-tenant, free-standing net-lease properties leased to investment-grade corporate tenants, according to meeting notes provided via e-mail by spokesperson David Graham.
Blue Owl Capital was established in 2021 through the merger of Owl Rock Capital Corp. and Dyal Capital Partners, creating a publicly listed alternative-asset manager with businesses spanning credit, general partners strategic capital, and real assets. The firm has more than $284B in assets under management, according to its website.
Blue Owl VII targets properties leased to high-quality tenants with at least 11 years of remaining lease term in economically resilient markets, at cap rates above 7%, according to fund materials filed with the Vermont Pension Investment Commission in March 2025. The strategy seeks to combine stable income with long-term capital appreciation in sectors insulated from cyclical volatility.
OP&F’s real-estate portfolio now totals $1.93B, representing 9.3 % of the pension’s overall investment portfolio.
An independent actuarial study reaffirmed OP&F’s compliance with state funding rules. The review, presented by actuarial consultant CavMac at the Oct. 22 meeting, showed the pension’s funding period stood at 29.88 years as of Jan. 1, 2025 — below the 30-year limit mandated by Ohio law.
Despite structural underfunding, OP&F’s strong investment performance has helped it remain compliant. The portfolio posted an 11.13 % gross return in 2024, exceeding its 7.5 % target. CavMac conducts annual valuations to monitor funding levels, and while the 2025 funding period edged up slightly from the prior year’s 29.77 years, OP&F remains within the statutory threshold.
