San Bernardino County Employees’ Retirement Association is planning to invest $150m (€128m) in real estate, debt and infrastructure through Kayne Anderson Capital Advisors.
The pension fund will establish a single account to invest in Kayne Anderson funds, as well co-investments and direct investments, according to a board meeting document.
The account will run over a multi-year period and can increase in size in the future.
One of the first potential investments would be a $15m commitment to Kayne Anderson Real Estate Partners V.
Kayne Anderson, which did not comment, is seeking to raise $1.2bn for the closed-ended fund which invests in niche sectors such as medical office buildings, senior housing and student accommodation.
The fund is targeting net returns of 18% and a 10% current yield, and uses what it determines to be best-in-class operating partners for any given sector.
It uses MB Real Estate for medicla offices and Discovery Management for senior housing. Earlier this year, it bought Sentio Healthcare Properties from KKR.
Kayne Anderson is also raising capital for an open-ended core property fund.
The Kayne Anderson Core Real Estate Fund, which focuses on medical offices, senior living, student housing and self-storage, is targeting net returns of 9% to 10% and 6% current income.
The company also runs the Kayne Infrastructure Income Fund, which looks to produce net returns of 6% to 8% net IRR with a 6% current yield.