Texas Municipal commits $100m to Kildare

The Texas Municipal Retirement System (TMRS) committed $100 million to Kildare Partners’ latest European vehicle, according to materials from the pension’s Thursday meeting.

The London-based firm, led by sector veteran Ellis Short, is seeking $2 billion of equity for its Kildare European Partners (KEP) II fund, PERE reported in April. The firm is targeting a 14 percent plus net return.

The fund is the successor to Kildare’s first fund, Kildare European Partners, which was originally meant to attract $1.5 billion but was ultimately oversubscribed when it closed in 2014 on approximately $2 billion.

For its latest vehicle, Kildare will execute the same strategy, investing in real estate and real estate-related assets in Europe with a primary focus in Germany, the Netherlands, the UK and Italy, according to TMRS. The principal strategy is to access commercial real estate debt and equity investments through distressed assets.

Other investors in KEP II include the New Mexico Educational Retirement Board, which allocated $80 million, and the Texas Permanent School Fund, which committed $75 million, according to PERE Research & Analytics.

Real estate made up 6 percent, or $1.4 billion, of TMRS’ portfolio as of December 31, according to the pension system’s website. In March, the pension system committed $300 million to The Blackstone Group’s first core-plus fund, Blackstone Property Partners, and $75 million to DivcoWest’s DivcoWest Fund V. These allocations fulfilled TMRS’ goal of increasing its real estate holdings to comprise 10 percent of its overall portfolio.