North Carolina Retirement Systems is investing $1.15bn (€994m) in US real estate debt via Benefit Street Partners-managed strategies.
The pension fund disclosed in a board meeting document that it had issued a $200m commitment to the BSP Real Estate Opportunity Fund II and committed $950m to two separate accounts with Benefit Street.
According to sources, Fund II is expected to provide junior and senior real estate debt and related equity investments in assets, specifically targeting construction deals for industrial and multifamily properties.
The fund is aiming for a net internal rate of return of 13% to 15% and annualised cash yields ranging from 8% to 10%.
The target capital raise for Fund II is not yet known.
Benefit Street Partners did not respond to a request for comment.
North Carolina Retirement said it committed $300m to a core industrial separate account managed by LBA Realty. It also placed $200m with Northpond for a separate account targeting a value-add strategy in essential service retail.
Additionally, the pension fund issued a $98m commitment to the Brookfield Infrastructure Walker co-investment, but no other information on the transaction was disclosed.
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