The $8 billion San Diego City Employees’ Retirement System has committed $20 million to Torchlight Debt Opportunity Fund VI, according to board meeting documents.
Torchlight Debt Opportunity Fund VI, managed by Torchlight Investors, is an opportunistic real estate debt fund focused on investing across multiple real estate debt strategies including first lien commercial mortgages, CMBS, mezzanine loans, and commercial real estate asset-backed CDOs.
SDCERS previously committed $20 million to the fund’s predecessor, Torchlight Debt Opportunity Fund V, in 2015.
In accordance with its fiscal year 2017 real estate annual investment plan, SDCERS plans to invest a total of $40 million to be deployed into noncore real estate investment opportunities. Torchlight Debt Opportunity Fund VI was identified as an attractive tactical complement to the pension fund’s real estate portfolio by AHIC and SDCERS staff.
In additional news, the pension fund voted to lower its assumed rate of return from 7 percent to 6.75 percent for the year ended June 30, 2017, and then to 6.5 percent for the year ending June 30, 2018.
