PGIM is to open up an existing $400m (€339m) agriculture porfolio to third-party investors with a view to eventually converting it into a perpetual-life fund.
According to Washing State Investment Board (WSIB), the company plans to raise $600m from investors for the PGIM Agriculture Fund.
WSIB is considering a $100m commitment and is among a select number of investors offered access to the fund, according to board meeting report.
In the future, the fund could be converted into a open-ended vehicle.
PGIM declined a request for comment.
The assets are all located in the US and include permanent crops, including citrus and nuts, and row crops such as corn, soybean, rice and cotton.
WSIB’s $100m commitment – which is due to be approved at its board meeting on 15 April – would form part of its $6.9bn tangible-assets allocation, of which 28% is made up agriculture investments.
“Investments in physical holdings like agricultural, timberland and infrastructure are considered to be part of the income/appreciation strategy of the tangible-assets portfolio,” WSIB said.
Tangible assets make up 5.5% of the pension fund’s overall portfolio.
“Investments are being reviewed as the team works toward a portfolio targeted allocation of 7%,” WSIB said.
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