Sacramento County invests in European debt
The $7.4 billion Sacramento County (Calif.) Employees' Retirement System has made an initial investment in European real estate debt, committing $50 million to DRC Capital’s European Real Estate Debt Fund II.
The firm launched EREDF II in 2012 with a £400 million ($648 million) fundraising goal. It pursues a similar strategy as EREDF I, which closed in 2011 with more than £300 million ($486 million) and is fully invested with 15 investments. EREDF II has started to invest some of its capital. The series provides mezzanine financing for prime commercial real estate with a strong tenant base, primarily in the United Kingdom and Germany. Fund II is expected to invest in acquisition financing, refinancing and purchasing discounted performing loans in the secondary markets, and it will have a minority allocation to junior performing Eur