Kern County Employees’ Retirement Association (KCERA) is planning to invest $85m (€79.7m) in real estate this year by committing the capital to two opportunistic funds focused on US or Europe.
Cambridge Associates, KCERA’s investment consultant, disclosed in a meeting document that the pension fund’s real estate pacing for 2023 will involve making a $50m and a $35m commitment to two opportunistic funds that expect to generate returns of 12% to 15% with equity multiples of 1.5x to 1.8x.
In 2022, KCERA invested $40m with Landmark Partners for real estate secondaries and invested $30m with Covenant Capital for value-add apartments. The pension fund also invested another $30m with KSL Capital Partners for opportunistic hospitality last year.
As of the end of 2022, KCERA held a $460m real estate portfolio, 74% of which were core assets with value-add and opportunistic real estate assets making up the remaining portfolio.
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