Mississippi Public Employees Retirement System (PERS) has committed $150m (€127.1m) to its real estate portfolio, split equally with allocations to Blue Owl and Crow Holding Capital funds.
The pension fund disclosed in a board meeting document that it placed $75m each into the Blue Owl Real Estate Fund VII and Crow Holdings Diversified Value-Add Fund XI funds.
Blue Owl is seeking to raise $6.5bn for Fund VII, with a hard cap of $7.5bn. The fund, which targets an 8% preferred annual return, expects to invest in properties secured by long-term leases.
Crow Holding is seeking to raise $3.25bn for Fund XI, targeting an internal rate of returns of 12% net and 16% on a gross basis. The fund will target a mix of core-plus and value-add opportunities, including property acquisitions and ground-up developments.
As reported earlier this year, Mississippi PERS initiated its fund manager search with a total allocation target of up to $200m.
The search involved five finalists, including Blue Owl and Crow Holdings. The other contenders were Artemis Real Estate Partners Fund V, Pennybacker VII and Stockbridge Value Fund VI.
To read the latest IPE Real Assets magazine click here.
