Blue Owl— The Illinois Municipal Retirement Fund (IMRF) has committed $125 million to Blue Owl Capital’s Real Estate Fund VII, strengthening an existing investment relationship with the global alternative asset manager and signaling continued confidence in net-lease strategies during uncertain market conditions.
The investment is part of IMRF’s $300 million in total allocations made in May across private equity, venture capital, and real estate strategies. Blue Owl’s Fund VII is currently seeking to raise $6.5 billion and is focused on acquiring net-lease assets across the U.S. and Canada.
The fund primarily targets industrial properties, while also pursuing select opportunities in office and retail.
According to IMRF’s board meeting disclosures, Fund VII is designed to acquire assets with lease terms of at least 11 years, aiming for an average duration of 15 years. The fund also incorporates 2% annual rent escalations and maintains disciplined use of leverage, with property-level borrowing capped at 65% of total cost.
This new $125 million commitment brings IMRF’s aggregate investment with Blue Owl and its real estate affiliate Oak Street Funds to $275 million.
The move aligns with IMRF’s broader strategy of enhancing returns through real assets and alternative investments. As of March 31, 2025, IMRF manages $55.2 billion in assets, with 10% allocated to private real assets and 13% to alternative strategies overall.
The Blue Owl commitment highlights the pension fund’s ongoing effort to diversify its holdings and strengthen long-term cash flow through stable, income-generating properties. It also comes at a time when institutional investors are increasingly turning to net-lease vehicles to hedge against inflation and market volatility.
Blue Owl Capital, known for its conservative underwriting and focus on mission-critical assets, continues to attract large institutional capital as it expands its footprint in the U.S. and Canadian real estate markets.
With nearly 340,000 beneficiaries—primarily municipal employees outside of Chicago—IMRF maintains one of the healthiest funding ratios among public pension plans at 96.6%, according to its website.