Alternatives are on the map for the $64 billion (€44 billion) Pennsylvania Public School Employees’ Retirement System. The pension’s board, meeting yesterday, approved commitments to several global real estate and private equity funds.
Pennsylvania’s real estate commitments included an investment of up to $200 million in Beacon Capital Partners’ latest real estate vehicle, Beacon Capital Strategic Partners VI, with an additional $200 million commitment available for a co-investment fund. The vehicle, which held its first close in April, continues on Beacon's focus on office properties in key urban, knowledge-based cities.
The pension also committed up to $100 million in Boston-based Cabot Properties’ latest industrial property fund, Cabot Industrial Value Fund III, as well as up to $150 million in the Stockbridge Value Fund, and up to $125 million in Mesa West Real Estate Income Fund II.
The system’s private equity investments included up to €150 million in Stockholm-based Nordic Capital’s Nordic Capital Fund VII and up to $250 million in energy fund First Reserve Fund XII.
The Pennsylvania pension has directed significant capital to the real estate asset class since the beginning of the year. In May, the system approved commitments of up to $400 million to Morgan Stanley’s $10 billion global real estate vehicle, Morgan Stanley Real Estate Fund VII Global. It also committed up to $175 million in Paladin Realty’s Latin America-focused fund, Paladin Realty Latin America Investors III.