The Illinois Municipal Retirement Fund, a $54.9 billion public pension fund, is seeking a manager that operates a residential real estate strategy, according to a request for proposal issued Monday.
The fund may consider multiple managers and anticipates committing at least $50 million per strategy. The fund will only consider closed-ended funds.
Requirements for managers include having at least 75% of capital invested in real estate properties, with a proven track record in the strategy. Prospective firms should have at least $250 million in assets under management, according to the RFP.
“Single or multiple strategy equity funds focused exclusively on residential real estate including but not limited to affordable housing, workforce housing, student housing, manufactured housing, single family build to rent, and senior housing will be considered,” the RFP states.
Proposals from prospective managers are due by November 22. The fund anticipates selecting a manager by February 21, 2025, with finalists presenting to the IMRF investment committee the day prior.
The fund will consider four primary factors in its manager selection:
- People, including the stability and ownership of a firm; the reputation, experience and tenure of its professionals; and its record of integrity and business ethics;
- Process, seeking a clearly defined, reasonable and repeatable investment strategy;
- Performance, based on documented investment performance relative to benchmarks and peers; and
- Pricing, based on the firm’s fees and costs.
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.
Related Stories:
Illinois Nears Completion of Statewide Police Pension Consolidation
Illinois Group Wants Municipal Pension Consolidations
Tags: Illinois Municipal Retirement Fund, IMRF, Manager selection, Real Assets, Real Estate
