Los Angeles Water and Power Employees’ Retirement Plan has approved a $100m (€85.5m) commitment to Invesco Real Estate’s open-ended core-plus US real estate debt fund.
The pension fund disclosed in a board meeting document that its $100m commitment to the Invesco Commercial Mortgage Income US Fund was made up of $80m from the Retirement Fund and $20m from the Retiree Health Benefits Fund.
Invesco launched the Mortgage Income Fund in 2017, and according to the most recent SEC filing from July 2024, the fund had 26 investors with total commitments of $1.95bn.
The fund targets senior debt, subordinated debt and preferred equity investments in the middle-market segment, with typical deals ranging from $80m to $100m in three-to-seven-year debt at a floating interest rate.
Around 50% of the fund’s capital is expected to be allocated to residential and 20% to industrial, with the remaining portion intended for life science labs, office, hotel and self-storage properties.
Invesco declined a request for comment.
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