Ohio Public Employees Retirement System (PERS) has made a $425m (€393.1m) commitment to opportunistic US real estate via an Axonic Capital fund and a new separate account managed by Principal Real Estate Investors.

The pension fund told IPE Real Assets that it had made a $200m commitment directly into Taconic CRE Dislocation Fund IV, with an additional $75m commitment to co-invest alongside the fund.

The fund’s manager, Axonic Capital, did not respond to a request for comment. Fund IV’s fundraising target is currently unknown. Its predecessor, Fund III, which closed with $500m in commitments in May 2022, targets hotel and office properties.

According to Ohio PERS, Fund IV will pursue opportunistic investments in distressed debt and special situations across the US.

Ohio PERS said it has created a new value-add/opportunistic separate account with Principal and allocated an initial $150m to the account that will target US real estate-operating companies by providing them with growth capital.

Principal has full investment discretion over the account, which has a leverage target of no more than 50%.

Principal did not respond to a request for comment.

 To read the latest IPE Real Assets magazine click here.

Topics