Recently several U.S. pension funds have committed to value-added styled funds for their real estate allocations.

The Connecticut Retirement Plans and Trust Funds (CRPTF) committed $200 million to BIG Real Estate Fund III, a real estate debt fund managed by Basis Investment Group, according to the IREI.Q database. The fund launched in 2024 with a $1.1 billion fundraising goal.

BIG Real Estate Fund III is a closed-end fund focused on multifamily, retail, debt and mezzanine properties in North America. This fund acquires diversified commercial real estate debt investments. A fundraising target has not been disclosed. BIG Real Estate Fund III is the third high-yield debt fund in the series.

In other news, the California State Teachers’ Retirement System invested $150 million in DivCore Fund VII, a fund managed by DivcoWest. The value-added, closed-end fund invests in diversified properties across the United States.

DivCore Fund VI’s predecessor closed in