PSERS commits additional $75m to real estate debt fund
The $47.6 billion Pennsylvania Public School Employees Retirement System has committed an additional $75 million to Värde Partners’ Scratch and Dent Fund, according to recent meeting documents.
The fund invests in commercial real estate loans with high loan-to-value ratios, low debt-service coverage ratios and/or occasional missed payments. The fund focuses on loans backed by office, industrial, retail and niche properties, such as car washes, gas stations and auto repairs shops under $25 million.
The Värde Partners’ fund, which held a final close of $500 million in mid-2015, is seeking an additional $300 million from the fund’s investors to continue to invest in the market without launching follow-up vehicle. PSERS committed $150 million to the fund in 2014.
The pension fu