Pennsylvania PSERS approves $300m commitment

The Harrisburg-based public pension has backed Brookfield's fourth 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 $300 million commitment to Brookfield Strategic Real Estate Partners IV, according to a press release issued by the organization.

Brookfield Asset Management launched the vehicle in April 2021 targeting $17 billion in investor capital. As reported by PERE in June, this made it the first private real estate opportunity fund with a fundraising target north of $10 billion since the pandemic began. The fund will target investment opportunities in property assets and real estate operating companies in North America, Brazil, Europe and Australia.

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.

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