Teachers’ Retirement System of Oklahoma has approved a $100m (€91.5m) commitment to Oaktree Capital Management’s latest opportunistic real estate fund.
The pension fund disclosed in a meeting document that it has backed Oaktree Real Estate Opportunities Fund IX, a fund seeking to raise between $5bn and $6bn.
Oaktree Capital is expected to make a co-investment of up to 2.5% of the total capital raised, an amount not exceeding $100m.
The fund is expected to deploy capital by acquiring distressed debt or discounted securities, providing rescue capital or by participating in equity recapitalisations.
Fund IX will be looking for deals involving a variety of property types in where it can produce a net internal rate of return of 21% to 23% gross and 15% to 17% net.
Most of the fund’s capital will be invested in the US with some investments made globally.
Oaktree Capital declined a request for comment.
As previously reported, Oklahoma Teachers has set a $400m real estate pacing plan for 2023, a plan that involves making $100m worth of core investments.
Back in January, the pension fund approved a $100m commitment to EQT Exeter Industrial Value Fund VI, EQT’s value-add US industrial real estate fund.
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