Mississippi Public Employees Retirement System (PERS) plans to invest $200m (€171m) in one or two value-add real estate funds, according to a board meeting document.
Led by its investment consultant Callan, the pension fund will consider funds that have a target size of $750m or greater.
Mississippi PERS will focus on diversified funds that invest in housing, industrial, retail and other property types. No single-sector funds will be considered.
The pension fund is likely to select US-focused funds, although other North American investments are allowed with limitations.
Funds under consideration would have net target internal rates of return of 12%, have 40% or less exposure to development and be limited to a 65% loan-to-cost leverage ratio.
