Los Angeles County Employees Retirement Association (LACERA) has approved a $100m (€88.1m) commitment into Bain Capital Real Estate’s debut fund.
Bain Capital Real Estate was formed in 2018 after the real estate team of Harvard University’s $37.1bn endowment fund joined Bain Capital to form the new entity.
SEC filing in June last year showed that Bain Capital Real Estate Fund I is raising an undisclosed amount of capital.
In a meeting document, LACERA said it will invest the approved capital into the Bain Capital Real Estate Fund I.
Fund I will focus on niche real estate segments like industrial, global logistics, life science and lab space, senior housing, affordable apartments, urban retail and self-storage.
LACERA said its decision to back Fund I is due to the fact that the $56bn pension fund currently has limited or no exposure to the niche real estate segment.
According to LACERA, Bain Capital is planning to put together between 12 to 15 programmatic joint ventures for the fund with local specialist operating partners. The leverage amount planned for the fund is in the range of 60% to 65%.
As at the end of last year, the fund had invested or committed $280m of its capital into deals.
Bain Capital Real Estate declined a request for comment.