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Real Estate - FEBRUARY 12, 2015

D.C. Retirement Board to invest up to $235m in private real assets

by Reg Clodfelter

The $6.3 billion District of Columbia Retirement Board is looking to invest up to $235 million into real assets in 2015, including investments in private real estate, private infrastructure and private energy, according to recently released board minutes.

The board is targeting $75 million in investments in real estate with a range of $0 to $100 million. It is looking to divide the allocation between two to four investments ranging in size from $20 million to $30 million each. The board had $245.9 million in assets invested in real estate, as of Sept. 30, 2014, bringing it in line with its 4 percent target allocation to the sector.

DCRB’s target for infrastructure investments in 2015 is $40 million with a range of $0 to $60 million. The board is looking to make between zero and three investments with an average size of $20 million to $30 million. The board has $89.5 million invested in infrastructure, as of Sept. 30, 2014, accounting for 1.4 percent of its total assets, short of its 2 percent target allocation to the sector.

The board is looking to invest $40 million into energy as well, with a range of $0 to $75 million. The allocation will be divided between zero to three investments ranging in size from $20 million to $30 million. The board invested $20 million in private energy during the latter half of 2014 through a commitment to Quantum energy Partners VI. The board had only invested $17 million into private energy, as of Sept. 30, 2014, short of its 1 percent target allocation to the sector.

All of the investments are housed in DCRB’s real assets bucket, which has a target allocation of 7 percent with a range of 5 percent to 9 percent. As of Sept. 30, 2014, 5.5 percent of the board’s assets were invested in real assets. The real assets portfolio achieved an 11.5 percent return for 2014, net of fees, and has achieved a 9.1 percent return since its inception in July 2012.

 

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