New York State Common Retirement Fund (NYSCRF) has expanded its US real estate emerging manager programme through new investments with Pennybacker and The Macritchie Group.

The pension fund said it is committing $20m (€18.5m) to the Pennybacker Credit II fund and $15m to Macritchie’s Fox RV Parking Fund I fund.

Credit II will be focusing on originating and acquiring mezzanine loans and making preferred equity investments. The fund will target net internal rate of returns of 12% to 14%.

The Fox RV Parking fund will focus on developing and acquiring oversized vehicle storage facilities. This opportunistic fund targets net internal rate of returns of 15% to 17%.

According to the $210.5bn pension fund, Macritchie’s strategy is attractive as it targets a highly fragmented market with a supply/demand imbalance.

Macritchie did not respond to a request for comment.