Advanced Capital hires CalSTRS manager

Bryan Bailey has been appointed senior adviser to the Italian funds of funds firm. He joins ex-Merrill Lynch managing director John Herbert in shaping the firm’s real estate fund, which is targeting €300m.

Advanced Capital has appointed CalSTRS portfolio manager Bryan Bailey as a senior adviser to its real estate fund of funds.

Bailey will work with the Milan-based private equity firm on a part-time basis, PERE was told, although his input is expected to be “significant”.

Bailey is currently residential land portfolio manager for the $117 billion California State Teachers Retirement System. He was previously portfolio manager for neighbouring California Public Employees' Retirement System, overseeing residential land development, homebuilding, multifamily and urban infill strategies.

Led by Seth Leiberman, Advanced Capital is targeting the US and western Europe real estate markets through its first dedicated real estate funds of funds, the AC Real Estate Global Opportunity. John Herbert, former managing director and head of Merrill Lynch's European property and hotels group until 2007, was hired by Advanced in May as a senior adviser to the real estate fund.

The vehicle is targeting €300 million in commitments and 15 percent annual returns. The fund is expected to invest in up to 20 fund managers with a focus on “distressed property and property debt investments globally”, a statement said.

Advanced Capital founder and chief executive officer, said the firm was looking to the US “carefully to find the best opportunities to invest”.