APERS commits $255m across three private real estate vehicles

Institution: Arkansas Public Employees Retirement System
Headquarters: Little Rock, US
AUM: $11.6 billion
Allocation to alternatives: 12.29%

Arkansas Public Employees Retirement System has approved capital commitments worth $255 million across three private real estate vehicles, according to materials from the pension’s most recent investor committee meeting.

The commitments comprise $85 million each to Carlyle Property Investors (open-ended), Lion Industrial Trust (open-ended), and Principal Enhanced Property Fund (open-ended).

The Carlyle Group launched Carlyle Property Investors in September 2015, and has attracted more than $4 billion in investor capital for the fund.

Principal Enhanced Property Fund has been in the market since January 2004, and has attracted capital commitments of almost $3 billion.

Clarion Partners opened its industrial-focused open-ended vehicle back in December 2002, with more than $850 million committed to the fund according to PERE data.

APERS currently allocates 11.27% of its investment portfolio to private real estate, comprising more than $1.3 billion in capital.

As illustrated below, the $11.6 billion US public pension’s recent private real estate commitments have tended to target value-add or core/core-plus vehicles that invest in North America.

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