The Teacher Retirement System of Texas is committing $65m (€60m) to an opportunistic fund managed by Brockton Capital.

The US pension fund approved the commitment to Brockton Capital’s Fund III last month, according to an email received from the investor.

The commitment to Fund III was part of $221m approved by the pension fund last month.

Fund III, which is buying existing assets in the UK and improving them, is focused on the office, light industrial and value retail sectors.

Brockton Capital, which declined to comment, is targeting a $500m total capital raise for the fund, with leverage capped at 60%.

The manager has invested around 30% of anticipated equity for the fund.

Texas Teachers’ relationship with Brockton was first formed in 2010 when the pension fund committed £125m (€171m) to Fund II.

Other commitments approved last month by Texas Teachers include $75m to Equity International’s AV Fund and $50m to Integrated Capital’s Hospitality Fund II.

The commitment for AV Fund covers 60% of the $125m capital raise for the fund.

The fund manager did not comment.

According to its website, it co-invests with strong local partners and management teams to transform them into “industry-leading companies”.

All of the company’s investments are outside the US.

Its investment platforms include home-building, retail, industrial, office, hotels, self-storage, senior living and speciality finance.

Integrated Capital’s Fund II, a $200m value-added fund, buys hotels in the US and Canada.

Targeted returns are in the mid-teens, with 55-60% leverage on the fund.

Capital-raising is due to be completed by November.

Topics