Pennsylvania Public School Employees’ Retirement System (PSERS) is investing $175m (€158.3m) in US real estate debt via Acore Capital.
The pension fund disclosed in a meeting document that it had approved $125m directly into the Acore Opportunistic Credit II fund and made a $50m commitment to a co-investment sidecar associated with the fund.
Acore is seeking to raise between $750m and $1bn for the fund that targets transactions that can produce targeted net internal rate of returns of 13% to 15%.
Acore will be making a co-investment in the fund, representing 1% of the total capital raise, with a maximum of $10m.
The real estate debt credit fund will invest in whole loans, mezzanine debt, preferred equity, and performing and non-performing loan purchases secured by domestic real estate assets.
The fund will primarily focus on transactions in the US, with a focus on major and select secondary markets. However, up to 10% of the fund’s investments may be in assets located outside of the US.
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