Ohio Police & Fire backs healthcare property fund with $75 million

Ohio Police & Fire Pension Fund committed $75 million to Chicago Pacific Founders' Healthcare Real Estate Fund IV, a closed-end value-add and opportunistic vehicle targeting medical office buildings, senior housing, and medical infrastructure in the United States, Institutional Real Estate Inc. reported Sept. 4. Chicago Pacific Founders is seeking $400 million in equity for the fund, which makes the pension's commitment worth roughly 19% of the target raise.

The pension system had $22.1 billion in total assets as of June 23 and $1.9 billion in real estate assets at Dec. 31, 2025, against a 12% real estate allocation target. At the June asset level, that target implies roughly $2.65 billion in real estate, leaving a gap of around $750 million against the $1.9 billion reported at year-end. The new $75 million commitment covers about a tenth of that gap and equals roughly 4% of the pension's existing real estate assets.

The commitment's shape matters more than its size. Rather than adding to a broad-based real estate fund, Ohio Police & Fire selected a closed-end vehicle dedicated to medical office buildings, senior housing, and medical infrastructure, accepting the execution risk tied to less predictable property cash flows that comes with a value-add and opportunistic mandate. The closed-end structure locks the capital in for the fund's term, so the pension is making a longer-duration bet on healthcare-related real estate in exchange for a shot at higher returns than a core, open-ended fund would offer. For a pension fund still several hundred million dollars short of its stated allocation, that choice suggests the next commitments will arrive as sector-specific allocations.

The IREI report does not identify other investors in the fund or outline Ohio Police & Fire's broader real estate pipeline, so the immediate picture is a single $75 million commitment that is valuable to Chicago Pacific Founders and modest for the pension fund. The likely next step is additional commitments, and the healthcare-specific structure of this one hints that Ohio Police & Fire will pursue those commitments in defined sector sleeves.