Louisiana Teachers invests in Kayne Anderson and Stonepeak funds

Teachers’ Retirement System of Louisiana (TRSL) is investing an extra $125m (€105m) in real estate and infrastructure, having approved two new commitments to funds investing in North America.

The Louisiana pension fund is putting $75m into Kayne Anderson Real Estate Partners V and $50m into Stonepeak Infrastructure Fund III, according to a board meeting document.

Kayne Anderson is aiming to raise $1.5bn of equity for its Partners V vehicle, which will invest in medical office buildings, senior housing, student housing and multifamily.

Louisiana Teachers announced last month that it preferred value-add strategies and debt investments, and planned to invest up to $400m in real estate in the next 12 months.

The pension fund approved its commitment to Partners V based on the recommendation of its investment consultant Hamilton Lane.

The consultant said in the pension fund’s board meeting document that Kayne Anderson primarily targets niche, demographically-driven property types that exhibit favourable supply/demand fundamentals, fragmented ownership, low correlation with economic growth and limited buyer competition.

Meanwhile, Stonepeak is planning a $5bn capital raise for its Fund III, which will be the largest capital raise by far for the manager — exceeding its $3.5bn previous offering, Fund II.

Stonepeak has historically invested in middle-market infrastructure in North America, but the manager said it would increase its target equity size to accommodate the larger fund.

Deals are projected to vary from $100m to $1bn, and it plans to make between eight and 12 deals, targeting assets in the midstream energy, telecommunications, power/renewables/utilities, transportation and water market segments.

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