Texas pension fund makes $100m commitment to Almanac Realty

Teacher Retirement System of Texas has committed $100 million to Almanac Realty Securities IX.

Almanac IX is a closed-end, value-add fund that provides growth capital to REOCs, primarily in the United States. Rather than acquiring individual properties, Almanac will invest in individual REOCs that own and manage various real estate properties and often need capital to grow their business.

The fund will acquire these entity-level investments through the use of convertible debt with high current income. Although Almanac provides capital to the company in the form of debt, the fund also will have the opportunity to participate in the value creation of the company through the conversion of the debt to common equity, warrants or rights.