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CalSTRS in talks with Lazard for RE sale

The $193bn pension plan is working with Lazard to identify which assets to sell.

The California State Teachers’ Retirement System, the world’s largest educator-only pension fund, is considering selling fund stakes from its private equity real estate portfolio, PERE's sister publication, Secondaries Investor, reported Wednesday.

Sacramento-headquartered CalSTRS, which holds $25.7 billion in real estate assets, is working with Lazard to identify assets to sell, according to two sources familiar with the matter, although it’s unclear whether Lazard has been formally hired yet. It is understood the process, which has yet to formally launch, will likely involve closed-ended and value-added opportunistic funds.

It is still unclear how much the pension plan is planning to put up for sale, but one of the sources noted that it could offer a portfolio worth about $1 billion, while the other said it could break it down into several smaller portfolios in the hundreds of million of dollars.

For more on the story, visit Secondaries Investor. https://www.secondariesinvestor.com/details-on-calstrss-real-estate-de-risking-strategy-emerge/