The Ohio Police & Fire Pension Fund is investing $50m (€45m) in a Europe-focused fund managed by PW Real Assets, formerly Perella Weinberg.

The commitment marks the first time the pension fund has invested in a Europe-focused fund.

The allocation is larger than most of Ohio’s real estate fund commitments, which tend to be between $40m and $50m.

PW Real Assets was founded and led by Leon Bressler, after spinning out of the Perella Weinberg Group in July.

Martin Rosenberg, a principal with the Townsend Group, which advises Ohio, said in a board meeting that Bressler was very well respected and had a strong track record in its ability to find and close on opportunistic real estate transactions in Europe.

Townsend expects Real Estate Fund III to capitalise on the recovery of the real estate markets in Western Europe since the financial crisis.

Most of the capital for the fund will be invested in the UK, Germany, France and Spain. 

The fund has an IRR target of 15%.

Ohio Police & Fire said the fund would focus on direct assets, corporate investments and, to a limited extent, real estate credit.

Total capital raise for Real Estate Fund III is projected at €1.25bn-1.5bn.

PW Real Assets will co-invest €20m of its own capital, with €17m coming from Bressler.

Leverage on the fund will be 55-60%.