California Public Employees Retirement System (CalPERS) has approved a new $375m (€342.2m) allocation to its real estate emerging manager program.

The $355.6bn pension fund said the capital will be placed in the Canyon Catalyst Fund which is overseen by Canyon Partners. CalPERS approved a $350m allocation to the program in 2017.

The managers in the program include Rubicon Point Partners, BKM Capital Partners, Sack Properties, Paragon Commercial Group and Pacshore Partners.

With leverage limited to 50%, the fund has almost around $750m to invest in office buildings, neighbourhood-serving retail, industrial and multifamily asset.

Canyon and CalPERS have recently decided to expand the geographical scope of the program to include Denver. The previously targeted markets included California, Phoenix, Seattle and Portland.

According to sources, the Catalyst Fund has a current net asset value of $543.5m.