Virginia Retirement System has approved two new real estate commitments totalling $175m (€166.2m) to strategies managed by Artemis Real Estate Partners.
The pension fund disclosed in a board meeting document that it committed $125m to Artemis Income & Growth Fund II and approved a $50m investment into the Artemis Income & Growth II Separate Account.
According to sources, Artemis has raised $855m (€815m) for Fund II so far. The final capital raise is expected to reach its target during the first quarter of next year.
Virginia Retirement classifies Fund II as a core-plus investment, aiming for a net internal rate of returns of 11% to 13%. The capital will primarily be allocated through emerging managers across property types including industrial, residential and self-storage.
Virginia Retirement told IPE Real Assets that it retains approval rights for all transactions within the separate account, requiring the pension fund’s consent on every investment.
The Artemis separate account targets smaller funds and opportunities that complement, but are distinct from, the fund. The capital will be deployed through smaller US real estate fund managers.
Artemis declined a request for comment.
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