San Bernardino County Employees Retirement Association intends to approve a $75m (€64.8m) commitment to Kayne Anderson’s seventh value-add real estate fund.
The pension fund disclosed in a board meeting document that it expects to commit the capital to Kayne Anderson Real Estate Partners VII.
The fund manager has a $50m co-investment commitment to Partners VII.
According to San Bernardino County, Partners VII will make equity investments in “high confidence” sectors. Around 80% of the fund’s capital will target medical offices and student housing, with the remaining capital used for senior housing and light industrial properties.
As previously reported, Kayne Anderson is seeking to raise $3bn for the seventh US value-add fund. The fund expects to reach its final closing by the end of the year or early 2025.
Kayne Anderson declined a request for comment.
San Bernardino County previously invested in the two previous vehicles in the Kayne Anderson fund series which generated net internal rates of return of 9% and 13%.
The planned $75m commitment would be the pension fund’s first new real estate investment of 2025, as the pension fund targets to invest $145m in real estate this year.
Real estate accounts for 3.8% of San Bernardino County overall portfolio, compared with the pension fund’s 5% allocation target to the asset class.
San Bernardino County’s investment staff expects to propose a commitment to a European real estate debt fund to the board later in the year.
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