Tennessee Consolidated Retirement System has approved a $150m (€137.8m) commitment to Berkshire’s latest US residential real estate debt fund.
The $70.2bn pension fund told IPE Real Assets that the commitment to the Berkshire Multifamily Credit Fund IV fund has been allocated to Tennessee Consolidated’s $7.9bn strategic lending portfolio.
The target capital for the new Berkshire fund has not yet been determined. The last closed fund in the series, Fund III, raised $1.85bn in August 2021.
Fund IV is expected to invest in Freddie Mac’s multifamily capital markets execution B-piece debt investments, which are collateralised by high-quality multifamily assets in diverse US markets.
Additionally, on an opportunistic basis, Fund IV may consider investing in preferred equity, mezzanine debt, B-notes and distressed notes.
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