San Diego City Employees’ Retirement System (SDCERS) has backed a new US-focused real estate debt fund managed by Torchlight Investors.

The pension fund disclosed in a meeting document that it has made a $25m (€23.3m) commitment to Torchlight Debt Fund VIII.

Torchlight is seeking to raise $2bn for Fund VIII, a value-fund expected to generate net returns of 10% to 15%. The manager  raised $2.04bn in October 2021 for Fund VII, the previous fund in the series.

According to the meeting document, the fund has invested $355.3m in four transactions.

The deals include a single asset single commercial mortgage-backed securities transaction worth $247.1m. The equity sponsors on the portfolio include Blackstone, GIC and Starwood.

Fund VIII also bought a $60.4m discounted note for a 292-apartment complex in the River North area of Chicago, made a $31.6m loan for a Freddie Mac K-Series multifamily portfolio and a $16m preferred equity investment on a 262-unit apartment complex in Charlotte.

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