California retirement system commits $54m to U.S. debt fund

The $2.1 billion Stanislaus County (Calif.) Employees’ Retirement Association has committed $54 million to PGIM Real Estate U.S. Debt, according to a board meeting document.

PGIM Real Estate U.S. Debt is a value-added, open-end fund “comprised of senior and subordinated loans which are secured by institutional real estate with strong fundamentals and predictable income streams.”

PGIM is actively marketing this strategy and expects to raise approximately $2 billion over a three-year period, according to the documents. Once fully invested, the team expects to hold about 65 debt investments at any given time.

Stanislaus County (Calif.) Employees’ Retirement Association has a target allocation to real estate of 9.4 percent.