Connecticut Retirement Plans and Trust Funds, Hartford, will commit to Blackstone Special Situations Fund II, a real estate fund, confirmed Christine Shaw, director of government relations for Connecticut Treasurer Denise Nappier.
Ms. Nappier, principal fiduciary for the $23.9 billion system, is currently negotiating contract terms, Ms. Shaw wrote an e-mailed response to questions. “The amount to be committed has yet to be determined, but may be as high as $100 million.”
The system “has an extensive relationship” with Blackstone, having committed $100 million in 2007 to Blackstone Real Estate Partners Fund VI and $50 million in 2008 to Blackstone Real Estate Partners Europe III, Ms. Nappier wrote in a Dec. 1 memo to members of the pension system’s investment advisory council.
“The funds remain mostly unfunded and have not yet produced meaningful returns,” according to the memo.
The pension system also has a $30 million commitment to a 1997 Blackstone buyout fund, the memo said.
In a Nov. 19 memo to Ms. Nappier, the pension system’s chief investment officer, M. Timothy Corbett, endorsed a commitment to the Blackstone Special Situations Fund II because it specializes in distressed commercial real estate investments.
“The distressed segment of the real estate market represents the most compelling risk-adjusted return in today’s real estate market,” he wrote.