Massachusetts Pension Reserves Investment Management Board (Mass PRIM) is investing an initial $250m (€210.8m) alongside Oaktree Capital’s US and Europe real estate debt funds.
According to the US pension fund’s meeting document, it has placed the capital into a new separate vehicle, to invest alongside the Real Estate Debt Fund and the European Capital Solutions Fund.
The newly created vehicle, which has Mass PRIM as the sole investor, will give the pension fund the ability to set investment parameters to limit exposure to certain property types and markets. The vehicle will also have access to co-investment opportunities from both funds, with veto rights.
The Real Estate Debt Fund focuses on performing real estate debt in the US. The types of debt will include mezzanine loans, first mortgages, structured credit and corporate debt collateralised by a diversified mix of property types.
The European Capital Solutions fund seeks unsponsored opportunities and deploying smaller loans. The kinds of debt provided could be senior, uni-tranche or mezzanine debt to performing unsponsored borrowers.
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