People - APRIL 17, 2014

Tennessee hires J.P. Rachmaninoff as director of real estate

by Reg Clodfelter

The $40.4 billion Tennessee Consolidated Retirement System has hired J.P. Rachmaninoff to be its new director of real estate, replacing the former director, Peter Katseff.

“J.P. has an exceptional set of experiences that make him uniquely qualified for the position,” Michael Brakebill, chief investment officer with TCRS, comments on the hire. “He has excellent educational credentials, experience on the advisory side of the aisle, and also experience on the public fund side.”

Rachmaninoff was previously employed by the $160.7 billion New York Common Retirement Fund. Prior to his tenure with NYCRF, he spent time with Henderson Global Investors and Heitman, among others.

“TCRS’ real estate portfolio has been very successful, and there have been a number of strategic changes under way for several years to continually improve the performance of the portfolio,” Brakebill adds. “We expect that momentum to continue under J.P.’s leadership.”

Historically, TCRS’ real estate portfolio focused on unlevered, class A properties, which allowed the portfolio to perform quite well in relation to its peers during the global financial crisis. More recently, the portfolio has given increased attention to value-add and opportunistic plays, which Brakebill expects to continue under Rachmaninoff.

As of Dec. 31, 2013, TCRS’ real estate portfolio comprised approximately 5.2 percent of its total assets. Its target allocation for the real estate portfolio is 7 percent, which would require approximately $727.2 million of further investment to achieve.

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