The Nebraska Investment Council approved a measure at a board meeting held last week that allows investment staff to commit to certain private equity and real estate fund managers without having to wait for board approval, state investment officer Jeff States told sister publication Private Equity International.
Under the new protocol, staff will be able to make re-ups on follow-up funds when previously agreed upon or optimal fund terms are being offered. Commitments would likely be limited to around $25 million, States said, and any investment would have to be consistent with the council’s current annual asset allocation.
“We’ve invested long enough where we’re starting to see the funds we’ve been with come back,” States said, adding that an expedited process could help the $16.8 billion system gain access to vehicles prior to a first close, when better pricing is sometimes offered.
Nebraska’s real estate portfolio includes commitments to Beacon Capital Partners, BlackRock Real Estate, CBRE Global Investors, Heitman and Landmark Partners, according to data provider PERE Connect.
The system, which manages the investments of 30 state pensions, trusts and endowments, has a 5 percent allocation to real estate, with sub-allocations to core (50 percent to 80 percent), value-added (10 percent to 30 percent) and opportunistic funds (10 percent to 30 percent), according to documents. The system also has a 5 percent allocation to private equity.
In July, the council announced that is considering diversifying its real estate portfolio to include more debt investments, given a current abundance of such opportunities in the commercial real estate market.