Key Takeaways
- • The $25.2 billion State Universities Retirement System of Illinois (SURS) is seeking investment managers for its real assets portfolio spanning private real estate, private infrastructure and private agriculture, according to a mandate listed by Callan LLC on SURS's behalf.
- • The non-core portfolio commitment pacing target is $450 million to $550 million in 2026, though Callan indicates this could vary significantly.
- • Individual fund commitments are anticipated to range from $50 million to $100 million, with the primary focus on re-ups with existing relationships rather than new manager hires.
- • Eligibility thresholds are steep: real estate managers need at least $500 million in real estate net asset value and a fund targeting at least $500 million in commitments; fund-of-funds strategies are excluded.
- • All firms and proposed funds must register with Callan's manager database, which is free of charge.
Summary
The State Universities Retirement System of Illinois, which manages $25.2 billion, is seeking investment firms to manage its real assets portfolio, with a focus on private real estate, infrastructure and agriculture. The mandate, as listed by Callan LLC on behalf of SURS, covers private real estate equity and debt funds, private infrastructure equity funds, and private agriculture-focused vehicles.
Prospective private real estate managers must have at least five years of operating history as an investment management firm and at least 10 years managing institutional real estate assets, along with at least $500 million in real estate net asset value and a fund targeting at least $500 million in commitments. Infrastructure managers are expected to have at least five years of experience investing in infrastructure assets and a track record of deploying at least $500 million in the sector. Eligible infrastructure funds must be private equity vehicles of at least $500 million focused on OECD markets with sector diversification.
Private agriculture managers must have at least three years of operating history and roughly five years of experience managing agriculture investments, with a demonstrated ability to deploy at least $500 million in the sector. Funds must focus on farmland or related assets.
Across all strategies, funds must be open to new commitments over the next 12 months and be direct investment vehicles; fund-of-funds strategies will not be considered. The commitment pacing target for the non-core portfolio is $450 million to $550 million in 2026, though according to Callan's posting, this could vary significantly. While some new managers may be hired, the primary focus will be on re-ups with existing relationships, with individual fund commitments anticipated to range from $50 million to $100 million.
All firms and proposed funds must register with Callan's manager database, which is free of charge.
Prospective private real estate managers must have at least five years of operating history as an investment management firm and at least 10 years managing institutional real estate assets, along with at least $500 million in real estate net asset value and a fund targeting at least $500 million in commitments. Infrastructure managers are expected to have at least five years of experience investing in infrastructure assets and a track record of deploying at least $500 million in the sector. Eligible infrastructure funds must be private equity vehicles of at least $500 million focused on OECD markets with sector diversification.
Private agriculture managers must have at least three years of operating history and roughly five years of experience managing agriculture investments, with a demonstrated ability to deploy at least $500 million in the sector. Funds must focus on farmland or related assets.
Across all strategies, funds must be open to new commitments over the next 12 months and be direct investment vehicles; fund-of-funds strategies will not be considered. The commitment pacing target for the non-core portfolio is $450 million to $550 million in 2026, though according to Callan's posting, this could vary significantly. While some new managers may be hired, the primary focus will be on re-ups with existing relationships, with individual fund commitments anticipated to range from $50 million to $100 million.
All firms and proposed funds must register with Callan's manager database, which is free of charge.
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