REAL ESTATE- Pennsylvania Public School Employees Retirement System has approved an investment up to $200m into the Fortress Investment Fund IV.
The pension fund made this decision at its board meeting last month. One of the people involved in this action was Charles Spiller, director of alternative investments for the pension fund.
He said, “Fortress has highly experienced principals who have produced a very successful investment track record. Their latest fund will make a great addition to PSERS’ investment portfolio. Contract negotiations are underway and we look forward to continuing a working relationship with them.” The fund did invest $200m with Fortress into their Fortress Investment Fund a few years ago.
The manager of the newest commingled fund is Fortress Investment Group, LLC. It’s hoping that it can raise $3bn of equity from third-party capital commitments for Fund IV. The investment strategy will be looking at opportunities in both the US and in Western Europe.
Fortress will be looking at three kinds of transactions. One of these will be to invest directly in a combination of public and private companies.
The fund manager will be a player in the purchase of assets. These could be on a stand-alone basis or as the foundation for building a business to own or manage a large number of assets in the future.
Some deals will be to lead the restructuring and recapitalization of distressed businesses. This would include the purchase of debt securities and assets of distressed or bankrupt companies where the commingled fund is seeking to gain control.
Fortress will be investing in a variety of property types. This would include residential and commercial real estate and senior living.
Pennsylvania Public School made the investment in Fund IV as part of its opportunistic real estate program.