Maryland pension continues push into RE

Following its real estate and private equity target increases early this year, the $38 billion Maryland State Retirement and Pension System has made commitments to three funds.

The State Retirement and Pension System of Maryland, based in Baltimore, has committed $175 million (€112 million) to real estate and private equity funds including $100 million to Rockwood Capital’s latest US vehicle, Rockwood Capital Real Estate Partners VIII, $50 million to Great Hill Equity Partners IV and $25 million to Longitude Venture Partners.

The allocations were made as part of an asset-liability study conducted by the board and investment consultant Ennis Knupp, the pension’s executive director Dean Kenderdine told PERE.

The pension recently doubled its real estate allocation from five to 10 percent and also increased its private equity allocation from two percent to five percent. The pension is targeting both US and global property investments, said Kenderdine, and does not presently have plans to increase its real estate target further. According to the pension, at the end of the first quarter this year, it had a 6.5 percent of its investment portfolio in real estate.

New York-based Rockwood Capital closed its previous value-add fund, Rockwood Capital Real Estate Partners VII, in December 2006 with $1.1 billion in equity commitments. Boston-based Great Hill Partners closed its previous technology fund, Great Hill Equity Partners III, on $750 million in 2006.

The allocations decision included a reduction in the pension’s domestic equity allocation and fixed income allocation, with increases in real estate, private equity and international equities. The Maryland state pension’s new chief investment officer, Mansco Perry, who joined the pension in April, is tasked with overseeing the system’s $38 billion investment portfolio.