Texas Permanent School Fund has approved a commitment of $50m (€40.2m) to a pan-Asian investment strategy, the Fudo Capital Fund III, managed by Hong Kong-based CLSA Capital Partners.
The commitment by Texas Permanent comes alongside a $100m allocation to the AG Core Plus Realty Fund IV, also approved by the pension fund this month.
CLSA’s fund, which will invest in Japan, China, Australia, Hong Kong, Singapore, South Korea and Taiwan, has a value-added strategy.
The manager will target assets in need of re-development, re-positioning or releasing.
The fund will invest primarily in the $25m to $75m range, targeting the office, industrial, retail and mixed-use sector.
Texas Permanent, which is yet to sign a contract for Fund III, will now conduct due diligence on the fund.
Earlier this year, the Teacher Retirement System of Texas made a $200m commitment.
For AG Core, Angelo Gordon & Co is looking to raise $1bn, with leverage between 55% and 60%.
The manager will co-invest up to $15m of its own capital.
The fund will buy high-quality office, retail, industrial and apartments in the top 15 US markets, with up to 25% of the fund in non-US markets.
London, Amsterdam, Hong Kong and Seoul could all feature.
Targeted gross returns for the fund are 14-15%, with the current income component of the return projected to be 7-8%.
Texas Permanent has signed a new four-year contract to August 2019 with Courtland Partners.
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