Institution: New York State Common Retirement Fund
Headquarters: Albany, US
AUM: $279.7 billion
Allocation to alternatives: 26%
New York State Common Retirement Fund has approved $1.3 billion-worth of commitments across four private real estate vehicles, according to materials from its December 2021 monthly transaction report.
The $279.7 billion public pension has confirmed commitments of $300 million to Ventas Life Science and Healthcare Real Estate Fund (open-ended), Blackstone Real Estate Partners Asia III and JP Morgan Star Lake IV (Fund-of-one), as well as a $400 million commitment to Cortland Growth and Income Fund (open-ended).
Ventas launched its flagship core open-ended fund in February 2020, a perpetual life vehicle focused on investments in core and core-plus life science, medical office and senior housing real estate in North America. As of May 2022, it has raised $2.1 billion of institutional investor capital for the vehicle.
Blackstone launched its third-series Asian real estate vehicle in June 2021, holding an initial first close at $4 billion for the fund in October 2021. It is aiming to raise $9 billion for the fund, 30 percent more capital than its second-series vehicle, which had confirmed $7.1 billion in capital commitments at its final closing in April 2018.
JP Morgan Asset Management launched Star Lake IV in November 2021. Star Lake Fund IV is a fund-of-one that invests in a variety of value-add real estate assets that can generate a 13 percent internal rate of return.
Cortland launched its flagship open-ended fund in December 2018 with a focus on acquiring and operating market-rate, well-located multifamily assets with durable, stable, recurring income and strong capital expansion in US growth markets. As of May 2022, Cortland has raised $2.15 billion of institutional investor capital for the vehicle.
NYSCRF allocates 9 percent of its investment portfolio to private real estate, which comprises $25.17 billion in capital.
As illustrated below, NYSCRF’s recent private real estate commitments have tended to focus on North American value-add vehicles in the residential sector.
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