Maryland State Retirement and Pension System has committed $125m (€106.4m) to real estate funds managed by Caro Investors Management and Galvanized Climate Solutions.
The pension fund disclosed in a board meeting document that it committed $100m to the Caro Real Estate Credit Fund via its credit/debt portfolio.
This marks Maryland State Retirement’s first-ever investment with Caro Investors.
Caro Investors is seeking to raise $400m for the fund, which will focus on mid-market commercial real estate lending across 20 to 25 US real estate credit positions with deal sizes ranging from $5m to $50m.
The pension fund placed $25m into the Galvanize Real Estate Fund I fund via its opportunity asset class investment portfolio.
The Galvanized fund has a value-add and opportunistic investment strategy with a net internal rate of return of 11% to 15%.
The fund’s primary strategy is to acquire existing multifamily, industrial, student housing and self-storage, and implement operational retrofits to achieve net-zero emissions.
Galvanize has already begun deploying capital, including purchases in the Baltimore-Washington corridor and New Jersey.
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