Iowa Public Employees Retirement System (PERS) plans to invest $950m (€839m) in real assets debt next year, as part of a pacing plan that will also see $800m invested in real estate and real assets equity.
According to a board meeting report, $650m of the capital earmarked for real assets credit will go to new mandates and the pension fund is searching for prospective managers.
The remaining $300m will be committed equally between ITE Management, HPS Investment Partners and PGIM. The latter already manages an existing $179m real estate debt mandate for Iowa PERS.
Iowa PERS plans to invest $400m in real estate equity next year and the same amount again for real assets, which could include infrastructure, farmland and timberland.
The pension fund will launch a request for proposal for real assets managers in the first quarter of 2022.
Iowa PERS currently invests in private real estate through separate accounts managed by Clarion Partners, Invesco, RREEF and UBS, while other real assets investments are managed by Forest Investment Associates, UBS Farmland and the Brookfield Super-Core Infrastructure Fund.