Kern County Employees’ Retirement Association (KCERA) has approved a commitment to TPG Angelo Gordon’s latest US housing debt fund.
The pension fund disclosed in a meeting document that it has placed $50m (€45m) into TPG AG Essential Housing Fund III, which offers flexible debt to US homebuilders.
KCERA classifies its investment in Essential Housing Fund III as core. The pension fund is also considering a triple-net lease fund for its core holdings.
KCERA was among the investors who committed to the fund, contributing to the $1.3bn raised by the end of June 2024, as disclosed in TPG Angelo Gordon’s second quarter 2024 earnings report.
TPG Angelo Gordon aims to raise $3bbn for the US housing debt fund, including a $500m contribution from the manager.
The targeted net internal rate of returns for the fund are in the range of 13% to 15%. TPG Angelo Gordon declined a request for comment.
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