Clairvue Capital Partners bought a $25 million limited partnership interest in real estate fund Buchanan Fund V from a public pension plan investor, said Jeffrey Giller, Clairvue's managing partner and chief investment officer.
Mr. Giller said he is barred from identifying the seller.
Buchanan Street Partners manages the fund, which closed in 2007 with $400 million in commitments. Investors in the fund include the $9.9 billion Los Angeles City Employees' Retirement System and the $3.1 billion Fresno County (Calif.) Employees' Retirement Association.
“Buchanan (executives) did some very smart things with the way the invested and managed Fund V, which made this a particularly attractive investment,” Mr. Giller said. They invested a portion of the fund before the 2008 market crash. They used the fund's uninvested capital to restructure existing debt and to switch to making credit investments, primarily in first mortgages. This leaves the fund with low leverage and thus, lower risk.
