Teachers鈥� Retirement System of the State of Illinois has expanded its emerging manager programme through new investments with Oak Street Capital and Exeter Property Group.
The pension fund is committing $100m (鈧�95.2m) to Oak Street Capital Real Estate Fund IV and $40m to Exeter Industrial Value Fund IV.
The commitments represent a significant expansion of the programme. The pension fund currently has $79.4m invested with emerging real estate managers.
Oak Street Capital invests in net-lease real estate, a part of the market that US pension funds rarely invest in, according to industry sources.
Illinois Teachers has invested in the market before, committing $41.8m to Oak Street Capital鈥檚 previous fund.
There is some uncertainty as to whether the commitment to Exeter Industrial Value Fund IV will be accepted, since it has been .
Illinois Teachers considers Exeter to be an emerging manager. The pension fund told IPE Real Estate that the company 鈥渇its within the TRS definition of emerging manager鈥�.
It said: 鈥淚ts last fund has not been fully realised and this is a first-time commitment.鈥�
Other pension funds to seeking to join the fund include Texas Permanent School Fund and the New York State Teachers Retirement System.
