CalPERS expands relationship with Canyon Partners Real Estate

The California Public Employees’ Retirement System and Canyon Partners Real Estate today announced CalPERS has allocated $350 million of new capital to the Canyon Catalyst Fund, its real estate emerging manager program. The cumulative capital committed by CalPERS since 2012 now equals $1 billion.

CCF’s first fund has realized all 16 of its investments at returns well in excess of its target.

“Our partnership with Canyon Partners Real Estate is off to a strong start and has added value to CalPERS’ Real Estate portfolio,” said Paul Mouchakkaa, CalPERS managing investment director for real assets. “CalPERS' longstanding commitment to emerging managers is reflected in our expanded investment with Canyon.”

CCF currently invests in office, retail, industrial, multifamily and mixed-use projects in urban markets across California, with investments in 27 assets across the state. While remaining committed to investing in California, CCF will expand its geographic focus to the Phoenix, Seattle and Portland metro areas, and expects to add investments in the self-storage and student housing sectors.

“CalPERS is a leader in sponsoring emerging manager programs. For the managers in the program, we focus on disciplined growth while adhering to robust operational standards,” said Maria Stamolis, co-head of real estate investments at Canyon. “Through active engagement and mentorship in both investments and corporate operations, we position these managers to achieve sustainability and success.”

The platform has partnered with five emerging managers including Rubicon Point Partners, which under the direction of Ani Vartanian, has invested more than $170 million of equity capital in six office transactions in the Bay Area’s tech corridor. The other four firms include Pacshore Partners, a Southern California–focused creative office owner-operator; Paragon Commercial Group, which specializes in neighborhood-serving retail; Sack Properties, a statewide multifamily manager; and most recently, BKM Capital Partners, which targets multi-tenant industrial investments.

You can find the full press release at CalPERS’ website.