Pennsylvania Public School Employees Retirement System (PSERS) has committed $100m (€86.3m) to EQT’s latest US core-plus industrial strategy, which is seeking to raise $2bn, according to pension fund board documents.
EQT Exeter Industrial Core-Plus Fund V is currently negotiating its hard cap with limited partners, with EQT intending to co-invest 1% of total commitments to the vehicle, which targets net internal rates of return of 8.5% to 11%.
In the meeting document, Pennsylvania PSERS stated that the US industrial market is rapidly absorbing the supply wave delivered between 2022 and 2025, with vacancy rates stabilising at historical averages and high construction and debt costs curtailing new development.
The pension fund added that core market capital remains constrained as open-ended vehicles and non-traded real estate investment trusts continue to manage redemption queues.
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