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Pennsylvania PSERS approves $100m commitment to LEM Multifamily Fund VI

The Harrisburg-based public pension has backed LEM Capital's sixth flagship real estate vehicle.

Institution: Pennsylvania Public School Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $72.5 billion
Allocation to alternatives: 33.2%

Pennsylvania Public School Employees’ Retirement System has approved a $100 million commitment to LEM Multifamily Fund VI, according to materials from a January 2022 investment meeting.

LEM Capital launched the vehicle in 2020 with a fundraising target of $450 million. The value-added fund will target investment opportunities in the multifamily sector across the US. Its predecessor, LEM Multifamily Fund V, held a final close in June 2020 at $331 million, oversubscribed to its $300 million target.

PSERS currently allocates $5.37 billion to private real estate investments, comprising 7.4 percent of its total investment portfolio. The public pension has a target allocation to private real estate of 8 percent.

As illustrated below, PSERS’ recent private real estate commitments have focused on opportunistic and value-add vehicles that invest largely in North America.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.