New York State Common Retirement Fund (NYSCRF) has more than doubled its investment in Landmark Partners’ real estate secondaries fund.
The pension fund, which committed $150m (€120m) to Landmark Real Estate Partners VIII last July, is now committing a further $200m in co-investment capital.
NYSCRF told IPE Real Assets that, compared to its original commitment, the co-investment had a lower risk profile, giving it exposure to “a quality portfolio of funds sold by a reputable limited partner”.
Its commitment last year “respresented a blind pool investment” and therefore involved greater risk, it said.
Landmark Partners is seeking to raise between $2bn and $2.75bn for its eighth real estate fund, which will focus on buying interests in real estate funds on the secondary market.
NYSCRF is also investing with Avanath Capital Management for the first time, committing $50m to the Avanath Affordable Housing III fund and $50m to a co-investment vehicle.
Avanath is looking to acquire and improve class-B housing assets before selling them to core or core-plus investors. As reported earlier this year, Avanath’s third affordable housing fund had raised $388m.
NYSCRF said: “By its nature, affordable housing is a defensive investment sector, an investment which helps to protect the common retirement fund in the event of an inevitable real estate downtown, and Avanath has a history of successfully investing in this sector.”
The pension fund is also investing with Basis Investment Group for the first time, committing $25m to BIG Real Estate Fund I, which invests in real estate debt and equity structuring opportunities.
The investment is being made through NYSCRF’s emerging manager programme run by Artemis Real Estate Partners.
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