Teacher Retirement System (TRS) of Texas has issued $231m (€212.5m) worth of commitments to Lone Star and GCM Grosvenor real estate funds.

The pension fund said it has put $150m into Lone Star Residential Mortgage Fund III and $81m into Texas GCM Opportunistic RE Investments LP.

SEC filing in December last year revealed Lone Star is fundraising for its latest residential mortgage fund. The manager raised $719m in April 2019 for the predecessor fund.

The fund series has an investment strategy of targeting transactions in performing, sub-performing and lower loan-to-value non-performing US single-family residential mortgage loans, mortgage servicing rights (MSRs) or interests in MSRs.

TRS of Texas told IPE Real Assets that it considers the commitment to the Lone Star fund as a “special situation strategy”.

The opportunistic GCM Grosvenor fund will target international developed markets.

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