Illinois TRS invests $250m in real estate debt

The $41 billion Illinois Teachers’ Retirement System has committed $150 million to Lone Star Real Estate Fund III, a global debt fund managed by Lone Star.

LSREF III opened in June with a $6 billion fundraising goal. The opportunistic fund held a $3.09 billion first close. The vehicle is part of the firm’s Lone Star Real Estate Fund series, which invests in distressed commercial real estate debt and equity products. The global fund series primarily invests in the United States, Japan and Western Europe.

In addition, TRS invested $100 million with OaktreeCapital Management from the system’s $6.3 billion fixed income portfolio for investments related to the financing of real estate transactions. The vehicle is Oaktree Real Estate Debt Fund, which is a rec