SURS issues RFP for real assets fund managers

State Universities Retirement System of Illinois sent out a request for proposal through its investment consultant.

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Name: State Universities Retirement System of Illinois (SURS)
Headquarters: Champaign, US
AUM: $23.45 billion
Allocation to real estate: 9.64%

State Universities Retirement System of Illinois has issued a request-for-proposal (RFP) for real assets fund managers, through its investment consultant Callan. The institution will be investing across private real estate, infrastructure and agriculture.

The public pension fund requested the following minimum qualifications for private real estate funds:

  • The fund must be an open-ended or closed-ended fund investing into real estate primarily.
  • Investment principals must have 10+ years in managing institutional real
    estate assets. The investment firm must have a minimum of five years in operation.
  • As of December 31, 2023, the fund manager must have at least $500 million of net asset value in real estate.
  • The specific fund being presented must target capital commitments of at least $500 million. Additionally, it should not invest only in the office sector.
  • The fund must take on leverage less than 70 percent.

SURS also outlined its requirements for real estate debt funds:

  • The fund presented must be an open-ended or closed-ended fund investing into real estate debt primarily. It must have $500 million in gross value if open-ended, or target $500 million of commitments if closed-ended.
  • Investment principals must have a minimum of five years’ experience. The fund manager must be in operation for more than three years.
  • The firm should have made $500 million of real estate debt investments as of December 31, 2023.
  • The fund must have a regional focus in the US.

The RFP noted that SURS Illinois will aim to invest between $150 million to $250 million for 2024 across its core and non-core portfolio, with some flexibility. Additionally, each fund is expected to receive commitments ranging from $50 million to $100 million. Moreover, the pension fund will aim for re-ups to existing managers.

Finally, the RFP document also noted that qualified women, minority or persons with  disability-owned businesses will be exempt from a majority of the requirements.

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