California Public Employees Retirement System (CalPERS) is searching for “transitional” real estate fund managers to invest up to $400m (€344m) of separate-account capital.

CalPERS defines transitional managers as those that are no longer “emerging” and have already raised capital for at least three institutional funds or separate accounts.

The $351bn pension fund told IPE Real Assets that it is targeting managers that have “demonstrated early-stage success and are transitioning from small entrepreneurial platforms to established asset manager firms”.

CalPERS said it wanted to “provide a path of growth” to real estate managers to become larger, established companies.

The pension fund is looking specifically for core and value-add strategies targeting mixed-use and small-to-mid-sized office buildings in the greater New York City area and/or the San Francisco Bay Area.

Its gross return target is between 9% and 11%.

CalPERS, which holds around $30.5bn worth of real estate assets, said: “This will complement and does not overlap our existing office strategy, and it meets CalPERS Real Asset Unit’s investment criteria as far as cash yield, diversification and inflation protection.”

Interested managers need to respond by 7 September.