New York State Common Retirement Fund (NYSCRF) has made a $100m (€96m) commitment to BIG Real Estate Fund II a US real estate debt fund managed by Basis Investment Group.
“We have graduated the manager from being an emerging manager to the core portion of our real estate portfolio,” the pension fund told IPE Real Assets.
NYSCRF said it believes “Fund II is positioned for the current debt environment as there will be less availability of debt”.
As reported previously, Basis Investment Group seeks to raise $550m and a $750m hard cap for its real estate debt investment fund. The fund will be providing debt for acquisitions, refinancings and to recap existing properties. Fund II targets a net internal rate of return of 9% to 11%.
NYSCRF has also a $300m commitment to CVI Clean Energy Fund B II, a fund managed by CarVal Investors.
“The biggest factor for our investment is that this is a strategy with a strong pipeline of opportunities offering compelling returns in the energy sector,” the pension fund said.
The fund is focused on credit and hard-asset investments in the clean energy sector, in the US and Western Europe.
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