PCCP VIII will continue the firm’s strategy of investing opportunistically in equity real estate in the North American lower mid-market. According to Fresno’s investment recommendation, the fund will target a levered gross IRR of 18-20 percent and a net IRR of 14-16 percent.
The $3 billion US public pension previously committed $15 million to the predecessor vehicle, PCCP VII, in 2016. The $750 million seventh fund also targeted a levered gross IRR of 18-20 percent, according to presentation documents.
Fresno has a 15 percent target allocation to private real estate that currently stands at 13.3 percent.
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