The $33.9 billion Texas Permanent School Fund has invested capital into four real estate funds, according to board meeting documents via an online webcast.
The first commitment was up to $100 million to Madison Realty Capital Debt Fund IV. The fund, managed by Madison Realty Capital, is a closed-end, value-added real estate vehicle that will invest in debt secured by properties throughout the United States. The fund focuses investment in the Tri-State New York area, Miami and Los Angeles. To date, the Fund IV has raised more than $600 million and is scheduled to close another $400 million to $500 million in the next month or so and plans to close in December 2018, according to the webcast. Texas Permanent invested in Fund II in 2012.
The second commitment was up to €75 million ($87.5 million) to European Property Investors Special Opportunities 5, managed by Tristan Capital Partners. The fund has a noncore, value-added investment strategy and invests in office, industrial, retail and residential properties across Europe. It is an existing relationship with the manager, with Texas Permanent having committed to the two previous funds in the series.
The third commitment was up to $75 million to TPG Real Estate Partners III, managed by TPG Capital. This is a new manager with Texas Permanent. TPG Real Estate Partners III is focused on opportunistic platform real estate investments in the United States and Europe.
The final commitment was up to $100 million to PAG Enhanced Credit Fund II, a real estate debt fund that will focus its opportunities in the Asia Pacific region.
Texas Permanent has a target allocation to real estate of 10 percent.
