Texas Teacher Retirement System, Austin, committed a total of $400 million to two new real estate debt managers in January, a transaction report showed.
Investment officers of the $146 billion pension fund split the allocation from the fund's real assets portfolio evenly between Square Mile Tactical Partners II–A and Madison International Prime Property Investors Series I.
Square Mile Capital Management will manage the special situations fund by providing financing for real estate operating platforms, investing in bankruptcy transactions and other restructuring actions in the U.S.
Madison International Realty's fund will focus on equity-financing real estate transactions involving high-quality core real estate properties in the U.S.
TRS' target allocation to real estate and real assets is 16%.