Belay Investment Group to receive an additional $100m from CalSTRS
The $224.4 billion California State Teachers’ Retirement System has made an additional $100 million commitment to expand investment activities with operating partners currently working with Belay Investment Group.
“In today’s highly competitive market, to find compelling investment opportunities it is imperative that we align ourselves with programs like those offered by Belay,” said Mike DiRé, CalSTRS director of real estate, in a statement. “Often, successful local operators are just not visible to large institutional investors like CalSTRS. Since our initial $200 million capital investment with Belay in 2016, we have been able to support the growth of several local operators, especially in their role as fiduciaries.”
The follow-on investment follows the pension fund’s $200 million investment in 2016. Belay focuses on investing with local operators and emerging managers, which was the impetus for CalSTRS’ additional capital commitment.
“CalSTRS was an early adopter of capturing the talent and investment capacity of local operators and emerging managers through joint venture programs. For more than a decade we have supported the growth and development of emerging managers in the real estate industry,” added DiRé.
The commitment gives CalSTRS exclusive access to all operating partner deal flow within the current Belay program.
“We have worked closely with CalSTRS for the past 12 years and share in the vision that combining an experienced and fiduciary-minded investment firm, such as Belay, with local operating partners or emerging managers provides greater access to opportunities, improved risk management, successful execution of business plans, and the potential to enhance investment returns, particularly in this competitive investment environment,” said Barry Chase, the managing principal and CEO of Belay.
Belay has invested $120 million of equity on behalf of CalSTRS through programmatic joint venture commitments to three value-add operators pursuing niche strategies. The three operators include: a team specialized in urban repositioning strategies targeting retail, multifamily and mixed-use assets in the Southwest; a Hispanic-focused workforce housing specialist capitalizing on the growth of the Hispanic middle class; and, a Portland, Oregon-focused mixed-use developer/operator targeting creative office and multifamily.
Belay retains discretion over all investment and major asset management related decisions but also actively mentors programmatic joint venture partners through the implementation of institutional best practices in areas of investment processes and procedures, corporate governance, accounting, and reporting.
As Belay focuses on investment activities primarily for the benefit of CalSTRS, partner Suzanne West will transition to a senior advisory role and continue to play an ongoing role in the firm’s growth.
