Connecticut Retirement Plans and Trust Funds (CRPTF) is considering investing in Landmark Partners’ latest real estate ‘secondaries’ fund, which is in the market to raise $2bn (€1.79bn).
The pension fund is mulling a $65m commitment to the Landmark Real Estate Fund VIII, according to one of its board meeting documents.
CRPTF commited $40m to the fund’s predecessor in 2015, an investment that generated a net internal rate (IRR) of 36.7% by the end of 2016.
The new fund is targeting a net IRR of 14% to 16%.
Both funds buy interests in real estate funds, joint ventures and other investment vehicles on the secondary market.
CRPTF said the funds are in a position to capitalise on liquidity issues among real estate funds launched in the years leading up to the global financial crisis in 2008.
Sellers can be motivated by a range of factors, it said, and represent a diverse group of investors, including endowments, foundations, public pension funds, and financial institutions.
As reported by IPE Real Estate earlier this year, an estimated $5bn (€4.7bn) is being raised for real estate secondaries strategies.
According to CRPTF, Landmark is seeking to raise a $2bn for Fund VIII and has a ‘hard cap’ of $2.75bn.
Landmark, which did not comment, is understood to have completed two rounds of fundraising, securing $260m in December last year, and a further $245m in February 2017.
In December 2016, IPE Real Estate reported that the Nebraska Investment Council has committed $40m to the fund.
A final close is expected later this year.
CRPTF is placing the investment into the opportunistic part of its real estate portfolio.
The pension fund aims to have 25% of the portfolio in opportunistic investment. At the end of 2016, its opportunistic investments represented 21.9%.
