The $8.5 billion Los Angeles City Employees' Retirement System (LACERS) has committed $25 million to ING Clarion’s latest debt investment vehicle.
The fund, ING Clarion Debt Opportunity Fund III, is targeting $1 billion, according to documents by the pension. It will invest in high-yield commercial real estate and related debt investments. Investments could include rated and unrated commercial mortgage-backed securities, B-notes, collateralised debt obligations, and other high-yield real estate debt.
ING Clarion Debt Opportunity Fund III is targeting a total net return of 15-plus percent, according to the pension. ING Clarion is the US fund arm of the Hague-based real estate investment firm, ING Real Estate.
LACERS also previously invested $25 million in ING’s second debt vehicle, ING Clarion Debt Opportunity Fund II.