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Strategic Partners paid $2.3bn for CalPERS RE portfolio

One of the co-investors that participated in the transaction was The Texas State Board of Education, which oversees the Texas Permanent School Fund, and contributed $50 million.

The total investment cost for the California Public Employees Retirement System’s real estate portfolio sale to Strategic Partners was $2.3 billion, according to a board meeting webcast by The Texas State Board of Education, which oversees the Texas Permanent School Fund.

The endowment contributed $50 million to Strategic Partners Real Estate Special Opportunities I, which is the vehicle that purchased CalPERS' $3 billion portfolio of real estate fund stakes.

The vehicle raised $614.7 million as of October 20, according to a filing with the Securities and Exchange Commission. The filing also revealed that the first sale in that fund was made on September 25.

The Texas Education Agency’s co-investment was approved in October and needed a special waiver from the board since it exceeded the $35 million investment limit for co-investments. The co-investment from Texas Permanent School Fund represented about 2.2 percent of the total purchase price.

To read more, visit PERE's sister publication, Secondaries Investor.