California Public Employees Retirement System (CalPERS) is searching for 鈥渢ransitional鈥� real estate fund managers to invest up to $400m (鈧�344m) of separate-account capital.
CalPERS defines transitional managers as those that are no longer 鈥渆merging鈥� and have already raised capital for at least three institutional funds or separate accounts.
The $351bn pension fund told 91传媒在线 that it is targeting managers that have 鈥渄emonstrated early-stage success and are transitioning from small entrepreneurial platforms to established asset manager firms鈥�.
CalPERS said it wanted to 鈥減rovide a path of growth鈥� to real estate managers to become larger, established companies.
The pension fund is looking specifically for core and value-add strategies targeting mixed-use and small-to-mid-sized office buildings in the greater New York City area and/or the San Francisco Bay Area.
Its gross return target is between 9% and 11%.
CalPERS, which holds around $30.5bn worth of real estate assets, said: 鈥淭his will complement and does not overlap our existing office strategy, and it meets CalPERS Real Asset Unit鈥檚 investment criteria as far as cash yield, diversification and inflation protection.鈥�
Interested managers need to respond by 7 September.
