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Chicago Teachers seeks ‘diverse’ RE manager

The $9.6bn pension system is accepting proposals for a non-core real estate fund by firms operated by women, minorities or persons with a disability.

The Chicago Teachers’ Pension Fund is looking to put capital to work with an investment firm owned by a woman, minority or a person with a disability for its latest non-core real estate mandate, according to a request for proposal released last week.

The pension system, which managed $9.6 billion at the end of the first quarter – including $801.5 million in real estate – said it will diligence firms with at least a three-year track record in domestic, global or international investing.

CTPF, which could not be reached for comment, said it would invest in open-ended or closed-ended commingled funds, or through a separate account.

Callan Associates, the pension system’s real estate investment consultant, will review the proposals, which must be submitted by end of day on September 23. Finalist presentations will take place on November 10 and, after selection, contract negotiations will finish by January 20, according to the RFP.

The RFP said firms will be ranked on people, process, performance and pricing. Firms with $500 million in assets under management are preferred, as are closed-ended funds with a minimum fund size of $500 million, although smaller firms and funds will be considered.

The pension system’s last non-core real estate fund investment was a $15 million earmark to CityView’s Southwest Multifamily Partners, a value-added residential fund launched in 2013, according to PERE research.

The pension fund is also in the process of selecting an investment manager to run an allocation for its real estate debt portfolio, PERE’s sister publication Real Estate Capital reported in June. CTPF is looking for “well capitalized and stable” firms to independently manage the firm’s core and non-core real estate debt investments, with an allocation ranging between $25 million and $75 million. The submission deadline was July 22, and contract negotiations are expected to be complete by November 18.