I
llinois Municipal Retirement Fund has made a significant move in its real estate portfolio, committing $100m to two US-based funds managed by Kayne Anderson Real Estate and Virtus Real Estate Capital. This investment marks the culmination of a request for proposal issued last October.

    The pension fund has allocated $50m each to the Kayne Attainable Housing Fund I and Virtus Real Estate Capital Fund IV, both of which are poised to capitalize on the growing demand for middle-market rentals in high-growth US markets. The Kayne Attainable Housing Fund is targeting a total of $500m, with a hard cap of $750m, and will focus on acquiring and developing Class B residential properties.

    Sources indicate that Virtus Real Estate Capital's Fund IV has already secured $375m in commitments, with a goal to raise $750m and a hard cap of $900m. The fund is expected to allocate 70-80% of its investments towards alternative housing assets, including both existing and new developments.