A USD 21.4 billion pension fund has made commitments to two private real estate funds, gaining maiden exposure to private funds. Employees' Retirement System of Texas has committed USD 100 million to the open-ended core vehicle LaSalle Property Fund, and USD 100 million to Cornerstone Core Mortgage Fund I, which makes core and debt investments. Both vehicles invest in the US. This is part of its plans to invest up to USD 2.1 billion in private real estate in the next four to five years. Around USD 1 billion will be allocated to private vehicles in 2010 and 2011. Even though it will invest in the US at first, it aims to gain exposure to property markets across the globe. It is interested in all fund types, including funds of funds which is believes will enable it to achieve a diversified portfolio.
More information on private equity real estate investors is available on Preqin's online product, Real Estate Online.