The South Carolina Employees Investment Commission has approved $200m (€178m) of new real estate commitments.
The US pension fund has allocated $100m to the Crow Holdings Realty Partners VII fund, a value-add real estate fund.
It allocated the same amount to the Torchlight Investors Debt Opportunity Fund V.
In a board meeting document, the pension fund said the investments would complement its other value-add real estate managers, including Brookfield, Greystar Real Estate Partners and TA Associates Realty.
Dallas-based Crow Holdings is seeking $1.5bn for Partners VII, which is 50% larger than its Fund VI.
Crow Family Holdings is co-investing $100m in the fund, for which is targeting an 11% net IRR.
South Carolina said 70% of Fund VII would be invested in cashflow-orientated investments.
Crow is targeting a combination of apartments, shopping centres, industrial and convenience stores/gas stations.
Around 30% of the portfolio will be made up of more value-orientated transactions, including office buildings and hotels.
Aon Hewitt, investment consultant for South Carolina, said Partners VII would invest in primary and secondary Sun-Belt markets.
South Carolina said Torchlight’s 20-year investment history in commercial real estate debt was one of the reasons behind its selection.
The investment will provide exposure to public and private real estate debt.
Management fees are discounted by 20%.
Torchlight will invest 35% of funds in securitised debt, 20% each in stapled mezzanine, distressed senior mortgages and mezzanine loans/B-notes and 5% in preferred equity.
Fund V has a targeted 13-15% net IRR, with a planned $1bn total equity raise.
The manager will co-invest either 1% of committed capital or $10m.
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