University of Texas Investment Management Co., Austin, has $1 billion to invest in private equity real estate, said Bruce Zimmerman, UTIMCO’s CEO and chief investment officer, speaking Wednesday at the Pension Real Estate Association’s 24th Annual Institutional Investor Real Estate Conference at the Hyatt Regency Century Plaza, Los Angeles.
UTIMCO manages $25 billion for endowments of the University of Texas and Texas A&M University. The move into private equity real estate would double its real estate portfolio, which has a current net asset value of $1 billion.
Speaking on a panel titled “The Global Economy’s Influence on Investment Performance,” Mr. Zimmerman mentioned that until relatively recently, UTIMCO did not have a private equity real estate portfolio. Specifically, UTIMCO is interested in distressed investments. Like other asset classes in its portfolio, UTIMCO officials are interested in partnering with managers to build a “very substantial portfolio.”
UTIMCO’s preference is for smaller funds, he added with apologies to fellow panelists, Mitchell Julis, co-founder, co-chairman and co-CEO of Canyon Partners, a hedge fund and real estate firm; and Mark McGoldrick, co-founder, global CEO of real estate money manager Mount Kellett Capital Management.
Separately, Mr. Zimmerman said UTIMCO is focusing on venture capital and growth capital investments in China. And it has about $200 million in exposure to Russia throughout its entire portfolio including $80 million in private equity and $120 million in an equity fund.