Employees Retirement System of Texas has allocated $47m (€34.5m) to Clearbell Partners, Tristan Capital Partners, Activum SG Capital Management and Spain-focused fund Autonomy.
ERS Texas made the allocation through Aberdeen’s European Opportunity Property Fund of Funds as it looks to capitalise on distressed real estate in the UK and Europe.
ERS Texas first made a $115m commitment to the strategy in 2012, classifying it as opportunistic. The fund is also considering US investment opportunities and is looking for a separate account manager.
The fund’s director of real estate, Robert Sessa, said: “We are looking to hire a separate account manager investing in niche property types. This could include self-storage, student or senior housing.”
Sessa said the fund is yet to decide how much it will invest in the strategy. US pension funds typically have at least $150m in separate accounts. Texas, Sessa added, is also considering co-investment opportunities.
“This would be either for us to co-invest with an existing fund or to co-invest on a direct basis,” he said.
Kansas Public Employees Retirement System has approved a maximum $40m commitment to Greystar’s non-core Equity Partners VIII fund.
Greystar is looking to raise $600m and will co-invest up to $20m to the fund, which invests in US apartments. Limited partners are expected to achieve an unleveraged IRR of 9% and a leveraged net IRR of 13%.
Montana State Board of Investment has voted to allocate $15m to CBRE Global Investors’ Strategic Partners US Value Fund VII.
CBRE GI will make a maximum $30m co-investment in the $1.5bn value-added fund, which will invest in the US office, industrial, hotels, retail and residential sectors. Targeted IRR returns are 15% gross and 12.8% net.