Texas County & District Retirement System has approved a $175m (€149m) commitment to a new Starwood Capital fund, a move the pension fund refers to as its first private real estate fund investment this year.

The pension fund has approved the capital to the Starwood Distressed Opportunity Fund XII Global, a fund seeking to raise $11bn to invest in a variety of real estate assets globally.

Starwood plans to raise $8bn directly into the fund and $3bn for a sidecar vehicle to invest alongside the fund.

In April this year, Texas County approved a commitment to the Cerberus Real Estate Debt Fund, a vehicle the pension fund refers to as a direct lending fund and not a private real estate fund.

Texas County’s investment in the Starwood fund adds to the $100m the Illinois Municipal Retirement Fund committed to the fund last month.

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