CalSTRS approves $475m in commitments

The US public pension has backed two North America-focused real estate funds.

Institution: California State Teachers’ Retirement System
Headquarters: Sacramento, United States
AUM: $252.45bn
Allocation to alternatives: 27.10%
Bitesize: $100-200m

California State Teachers’ Retirement System has committed $150 million to CrossHarbor Strategic Debt Fund and $325 million to DivcoWest Fund VI. CrossHarbor’s open-endened fund will be used to acquire mezzanine real estate debt throughout North America, while DivcoWest’s sixth vehicle will invest in North American office property using a value-add strategy.

The $252.45 billion US public pension has a 13.0 percent target allocation to real estate that currently stands at 13.84 percent.

As illustrated in the charts below, CalSTRS devotes 27.10 percent of its full investment portfolio to alternative assets. The pension has a strong appetite for North America-focused real estate funds across diversified sectors.

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