LSERS approves $50m in commitments and boost allocation by 7%

The US public pension has backed two private real estate funds, in line with new policy to increase investment in the asset class.

Institution: Louisiana School Employees’ Retirement System
Headquarters: Baton Rouge, United States
Total AUM: $1.82bn
Allocation to Alternatives: 15.0%
Bitesize: $10-50m

LSERS has agreed to commit $50 million to two private real estate funds, as confirmed by approved meeting minutes and through a representative of the organization.

Additionally, LSERS has increased target allocation to real estate from 5 percent to 12 percent.

The commitments comprise of $40 million to Siguler Guff Distressed Real Estate Opportunities Fund IIB, and an additional $10 million to Henderson Park Real Estate Fund I, all subject to legal review.

The $1.82 billion public pension currently allocates 6.9 percent of its funds to private real estate.

As illustrated in the charts below, LSERS has made two commitments to private real estate funds with a 2017 vintage year which combined constitute $60 million. With the additional $10 million commitment to Henderson Park Real Estate Fund I, the total commitment sums up to $40 million.

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