PSERS strengthens EQT Exeter relationship

The US public pension has backed the sixth edition of EQT Exeter's flagship industrial fund series.

  • Name: Pennsylvania Public School Employees’ Retirement System
  • HQ: Harrisburg, US
  • AUM: $76.0 billion
  • Allocations to alternatives: 32.1%

Pennsylvania Public School Employees’ Retirement System has confirmed a $100 million commitment to EQT Exeter Industrial Value Fund VI, according to materials from their latest investment committee meeting.

EQT Exeter, formerly Exeter Property Group, is the real estate division of EQT, a result of the EQT-Exeter merger that took place in April 2021. As of Q4 2021, the assets under management for EQT Exeter totaled around $17.5 billion.

PSERS has a long-standing relationship with EQT Exeter, committing $650 million across seven other Exeter vehicles in the past decade that includes the last four iterations of the Industrial Value Fund series.

IVF VI launched in May 2022 targeting $4 billion in investor commitments. The previous fund in the series closed on $2 billion against its $1.6 billion target size in 2020.

The Fund will capitalize on its local market presence and history of deep tenant relationships to source controlling interests in primarily domestic industrial properties. The core focus of the fund is on building large-scale portfolios diversified across geographies and tenant type that, once stabilized, become attractive to well-capitalized, low cost of capital core investors such as insurance companies, public pension plans, non-traded REITs, and sovereign wealth funds.

PSERS has a 7.7 percent allocation to private real estate, comprising of $5.85 billion in capital. The $76 billion public pension has an 8 percent target allocation to the asset class.

As illustrated below, PSERS’ recent private real estate commitments have been centered on North American vehicles that invest with a wide variety of strategic and sector focuses.

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