The Tennessee Consolidated Retirement System (TCRS) has appointed industry veteran JP Rachmaninoff as its new director of real estate. Rachmaninoff is replacing Peter Katseff, who left last fall after serving in the post for 15 years.
According to Michael Brakebill, chief investment officer for the Tennessee Treasury Department, Rachmaninoff’s appointment does not signal a significant shift in strategy for the historically core-focused pension plan. TCRS staff will continue to focus on core investments through its separate account program and will supplement that portfolio with non-core investments primarily achieved through commingled funds.
“Mr. Rachmaninoff has an exceptional set of experiences that make him uniquely qualified for the position,” Brakebill told PERE. “He has excellent educational credentials, experience on the advisory side of the aisle and also experience on the public fund side.”
Rachmaninoff, who has worked in the commercial real estate industry for more than 25 years, most recently served as senior real estate investment officer at the $173.2 billion New York State Common Retirement Fund. Prior to his eight-month stint at New York Common, he served as managing director at Palladian Capital Advisors, where he led the national multi-housing team and co-headed the firm’s Chicago office. Other previous roles include director of acquisitions and dispositions at Henderson Global Investors, managing director and senior portfolio manager at Heitman and vice president at Prudential Realty Group.
“[Rachmaninoff] also worked closely with the plan sponsor community, which allowed him to gain important insights into the issues faced by and the perspectives of this constituency,” added Brakebill. “As a result, he affords TCRS the broad perspective necessary to continue build on the successful program at TCRS.”
As of December 31, the TCRS real estate portfolio was valued at approximately $2.1 billion, or approximately 5.2 percent of plan’s $40 billion total assets. The pension’s target allocation to real estate is 7 percent.
Meanwhile, TCRS has issued an RFP for a real estate investment consultant due to the expiration of its contract with current consultant The Townsend Group on June 30. Finalist presentations are scheduled for the week of June 2, with a contract start date of July 1.