Kansas Public Employees Retirement System is to invest $150m (€121m) in global infrastructure and US residential markets.
The pension fund confirmed to IPE Real Assets that it has approved a $50m commitment to Waterton Residential Property Venture XIII, and equal commitments two infrastructure funds managed by IFM Investors and JP Morgan Asset Management.
Chicago-based Waterton is close to reaching the $1bn capital-raising target for its latest fund, and the move by Kansas PERS could see it become one of the final investors to commit.
Waterton Residential Property Venture XIII is targeting apartments in urban and suburban infill markets in the US.
The targeted return for the fund is 13% with a cash yield of 5% to 6%. Leverage on the fund will not exceed 65%. The average investment size of equity per deal is $15m to $25m.
The two infrastructure funds have open-ended and invest across global developed markets and a range of sectors.
It is the second time Kansas PERS has invested in the IFM Investors fund, having previously committed $100m.