Teachers’ Retirement System of Louisiana has committed $75m (€67.2m) to Mesirow’s latest residential strategy, according to the US pension fund.
The commitment was made to Mesirow Financial Real Estate Value Fund VI, which is planning a first close next month ahead of a final close in October 2027.
The fund is seeking $1.5bn in capital commitments with a $1.75bn hard cap.
Fund VI is targeting net returns of 10% to 12% by investing primarily in existing value-add apartment assets, alongside a selective allocation of up to 25% of fund assets into new development projects.
Mesirow expects to make 15 to 25 transactions with average equity deployments ranging from $45m to $125m per deal, with a target loan-to-value of 55% to 65%.
Louisiana Teachers has also approved a $100m commitment to TPG Real Estate Partners V, a opportunistic fund also expected to have a final close in October next year.
TPG has committed $170m, representing roughly 2% of total capital commitments, to the fund, which focuses on sector themes including data centres, industrial, senior living, student housing, manufactured housing and medical office properties.
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