Iowa Public Employees' Retirement System, Des Moines, issued an RFP in a search for limited partnerships to manage a total of $200 million in real estate debt investment strategies, according to the RFP.
It is a first-time allocation for IPERS, Karl Koch, IPERS chief investment officer, said in an e-mail.
The $23.4 billion pension fund could select more than one partnership.
“IPERS believes there is currently an opportunity for high risk-adjusted returns in high-yield RE debt,” Mr. Koch wrote. “The current and expected demand for capital to refinance existing commercial real estate debt greatly exceeds the supply of capital available.”
IPERS is seeking partnerships that “actively originate, acquire, finance, manage and dispose of” privately traded commercial real estate debt investments, primarily including mezzanine debt and first mortgages, but also possibly preferred equity investments, according to the RFP, which is available at www.ipers.org/ipers_central/rfps/2012debtfunds.pdf.
Funding will come from rebalancing, Mr. Koch said in the e-mail.
Proposals are due Sept. 7. IPERS expects to make a decision Dec. 6.
Wilshire Associates, IPERS' general investment consultant, is assisting in the search.