Indiana Public Retirement System (INPRS) has made a $75m (鈧�65.9m) commitment into a US mortgage debt strategy managed by Mack Real Estate Credit Strategies.
The $32bn US pension fund said in a board meeting document that it has approved the amount into Claros Mortgage Trust.
INPRS said real estate debt is likely to experience 鈥渓ower volatility and better risk-adjusted returns than real estate equity, especially in market drawdowns鈥�.
INPRS said it was expecting to return 9% to 12% from the investment and it would form part of its value-add real estate portfolio.
INPRS said Mack will target 鈥渢ransitional assets鈥� 鈥� properties with a 鈥渢emporary disruption in cash flow or generating income below market potential鈥�.
Mack Real formed Claros Trust in 2015 when it received a $262.5m lead investment from Almanac Realty Securities VII, a fund managed by Almanac Realty Investors.
The real estate manager declined a request for comment.
