Los Angeles City Employees’ Retirement System is investing $150m (€127m) in US real estate credit via BDT & MSD and Wolff Company funds.
The pension fund disclosed in a board meeting document that it has committed $100m to BDT & MSD Real Estate Credit Opportunity Fund III and placed $50m into Wolff Credit Partners IV fund.
BDT & MSD is seeking to raise $1.5bn for its latest fund which provides debt solutions for assets including residential, office, industrial, land and hospitality in high-growth US regions.
Wolff Company is seeking to raise $500m with a $600m hard cap for Partners IV.
The fund, which targets a net internal rate of return of 12% to 14% and a net multiple of 1.4x to 1.5x, has an investment strategy focussed on issuing preferred equity for multifamily developments across the US.
The vehicle provides preferred equity covering up to 85% of a development’s cost.
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