OPERS will not hire new RE fund managers due to Covid-19

The US public pension will not hire new real estate fund managers.

Institution: Oregon Public Employees’ Retirement System
Headquarters: Tigard, United States
AUM: $79.07bn
Allocation to alternatives: 43.75%
Bitesize: $200-500m

The Oregon Public Employees’ Retirement System held a pause on hiring new managers due to Covid-19 restrictions. New relationships will not be a priority given the inability to complete full due diligence, onsite visits and property assessments. However, new capital allocations with existing managers will continue since there is more familiarity with the existing managers, who can react more efficiently to changing market conditions, a source at the pension informed PERE.

The US public pension has a 12.50 percent target allocation to private real estate with an 11.73 percent current allocation.

As illustrated below, the pension fund has historically committed to value-add, core plus and debt funds in North America.

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