Investors - JANUARY 31, 2017

Arizona PSPRS commits $195m to real estate and energy funds

by Jody Barhanovich

The $8.4 billion Arizona Public Safety Personnel Retirement System has committed up to $195 million in new direct and co-investment commitments to three real estate and energy funds, according to spokesman Christian Palmer.

Arizona PSPRS committed up to $60 million directly and up to $30 million in co-investments to Actis Energy 4, an emerging markets energy infrastructure fund managed by Actis Capital. The closed-end fund will invest in electricity generation and distribution businesses in Latin America, Africa and Asia. Actis seeks to raise $2 billion in equity commitments for the fund. Arizona PSPRS previously committed up to $50 million to Actis Energy 3 in March 2013.

Actis Energy 4 recently received a $50 million commitment from the $7.3 billion New Hampshire Retirement System.

Arizona PSPRS also committed up to $50 million directly and up to $40 million in co-investments to Bluescape Energy Recapitalization & Restructuring Fund III. The closed-end natural resources fund will focus its investments in U.S. energy infrastructure. This is the pension fund’s first commitment to a Bluescape Energy Partners fund.

The Bluescape Energy fund previously received a $30 million commitment from the $11.7 billion New Mexico Educational Retirement Board.

Separately, the pension fund made a follow-on commitment of up to $15 million to Catalyst European Property Fund II. The pension fund originally committed up to €30 million ($32.4 million) in direct investments and up to €20 million ($21.6 million) in co-investments to the real estate fund in November 2014.

The opportunistic Catalyst fund launched in 2012 with a €600 million ($648.2 million) equity fundraising goal and will target investment opportunities in Belgium, France, Germany, Poland and the United Kingdom.

As of Sept. 23, 2016, Arizona PSPRS has a target allocation to real estate of 10 percent with an actual allocation of 10.5 percent.

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