New York State Common Retirement Fund has made a $150m (€133m) commitment to Landmark Partners’ latest real estate secondaries fund.
The pension fund told IPE Real Estate that it is investing in Landmark Real Estate Partners VIII as part of its $4.5bn opportunistic alternatives portfolio, held separately to its real estate allocation.
The opportunistic portfolio includes investments that do not fit neatly into its other mandates, including investing in real assets and the capital structures of public and private companies.
Landmark is seeking to raise between $2bn and $2.75bn this year for its latest fund, which will target a net internal rate of return of between 14% and 16%.
New York State Common said Landmark’s approach to real estate secondary markets differentiated it from competitors.
It also said it was attractive that the fund will be investing in other real estate funds at the late stage of their investment cycles, meaning capital is locked up for a shorter duration.
The underlying fund investments are also expected to generate cash flows and will diversify the pension fund’s income.
The pension fund has made several investments Landmark Partners in the past, including a $100m commitment to its seventh real estate fund in 2015.