Real Estate
The retirement system added a non-core real estate commitment last quarter following a search report from its consultant.
The retirement fund is considering a real estate strategy that targets affordable housing as well as neighborhood and community retail/mixed use within the city of Chicago.
The fund close represents Heitman’s “largest closed-end fundraise to date.”
The firm’s latest opportunistic real estate fund closes with total commitments exceeding $1 billion.
Many endowments, foundations and their allocators point to relatively small or medium-size private equity buyout and early-stage venture capital for returns that outpace the public markets, while private real estate, infrastructure, hedge funds and private debt, especially asset-based lending look like strong portfolio diversifiers in this year’s mercurial environment.
The plan added $560 million in recent commitments across private equity, infrastructure and real estate.
The retirement system also approved private equity and real estate commitments totaling $60 million yesterday.
The board recently approved real estate commitments and increased previously made private equity commitments.
The plan also made up to $55 million in alternatives commitments in the fourth quarter.
The retirement fund also terminated a global equity manager-of-managers and made commitments totaling $695.6 million in October.