Tag: co-investments

San Francisco Pension Weighs Larger Emphasis on Local Real Estate

Golden Gate Bridge

The San Francisco Employees Retirement System is deciding whether to increase its allocation to real estate in the San Francisco Bay Area.

Specifically, the board is weighing whether to begin allocating up to 3 percent of its assets toward such investments.

However, the area’s high real estate prices warrant caution, according to the fund’s advisors.

From Investments & Pensions Europe:

A 3% target allocation to real estate in the nine-county San Francisco Bay Area – first mooted by the retirement board in 2013 – is still being mulled by the pension fund.

No plans were approved at a meeting this month. Its advisers, Angeles Investment Advisors and Cambridge Associates, warned against over-concentration in its real estate porfolio at a time when the pension fund is looking more broadly at real assets.

A recent board meeting document stated: “SFERS private markets team and Cambridge Associates recommend maintaining a broad allocation to real assets rather than carving the category into several pieces such as infrastructure, natural resources, or San Francisco-based real estate.”

[…]

Investment staff will approach managers active in local real estate and evaluate the merits of entering into local co-investments with them.

The staff will also explore whether there are further efforts it can undertake to source and evaluate San Francisco-based real estate investment opportunities with attractive valuations and good prospective returns.

The San Francisco Employees Retirement System manages $20 billion in assets.

 

Photo by ilirjan rrumbullaku via Flickr CC License

CalPERS Seeks PE Portfolio Manager

Now hiringCalPERS is looking to hire a private equity portfolio manager (the listing can be accessed here).

The salary range is $11,666.66 – $17,500.00 monthly.

More information from the listing:

Duties include but are not limited to:

* Evaluate performance of legacy partnerships and co-investments

* Lead investment strategies to monetize investments to include secondary sales and monthly calling efforts

* Attend annual meetings, advisory board meetings and conduct quarterly monitoring calls

* Manage and monitor workload for investment professional in his/her reporting structure

Minimum Requirements and Experience:

* Bachelor’s degree in business administration, economics, finance, or a closely related field

* Five years of broad and extensive investment management experience for a major financial institution or firm, or government agency, including some experience leading or coordinating professional staff, and review of large and varied investment portfolio

* 3 years experience restructuring investment commitments ( private equity or equity strongly preferred, other private market experience such as real estate would be relevant in a commingled fund environment.)

* 5 years experience managing people

Desirable Qualifications:

* CFA

* Previous experience working for pension, foundation or endowment fund

* Previous experience leading and mentoring staff

* Ability to work well in a collaborative team environment

* Highly motivated self-starter

CalPERS is the nations largest public pension fund.

 

Photo by Nathan Stephens via Flickr CC License

Texas Teachers Commits $865 Million to Real Estate

businessman holding small model house in his hands

The Teacher Retirement System of Texas has committed $865 million to several real estate funds that will invest in Europe, the U.S. and elsewhere around the globe.

Details from IPE Real Estate:

The US pension fund approved a $465m allocation to Westbrook Partners’ UWS Co-Investment 9 venture. The manager, which did not comment, will invest in special situation opportunities on a global basis.

Westbrook is active in the US, as well as London, Paris, Munich and Tokyo.

Texas also made respective $150m and $50m commitments to Square Mile Capital Management’s Credit Partners and Tactical Partners debt funds. Square Mile declined to comment.

Credit Partners, which will raise $750m, includes a $200m co-investment by the manager.

USAA Real Estate Company, which invested in Square Mile in 2012, is understood to be behind the manager’s commitment.

Credit Partners, which is targeting 10% to 12% gross IRRs, will provide new loans, including mezzanine debt on major property asset classes, avoiding land and single-family residential.

Around 85% of capital will be invested in the US, with the remainder in Europe.

Texas Teachers also approved a $200m commitment to Almanac Realty Investors’ Securities VII, investing $100m directly into the fund and $100m into a sidecar for the same fund for co-investments. The fund focuses on US REITs and real estate operating companies.

TRS Texas manages $124 billion in assets.