South Carolina Retirement System Investment Commission invested or committed a total of $619 million with four alternative investment managers, with the possibility of an additional $450 million being invested over time at a meeting on Thursday at its Columbia headquarters.
The commission oversees investment on behalf of the $29.2 billion South Carolina Public Employee Benefit Authority, also in Columbia.
Commissioners approved initial commitments to existing real estate managers TA Associates Realty and Greystar Realty Partners for fund-of-one separate account vehicles using a “build-to-core” strategy, said Eric Rovelli, senior real estate manager, during a webcast of the RSIC meeting.
Mr. Rovelli highlighted the investment discretion that the fund-of-one vehicle will provide to the commission’s investment staff.
TA Associates Realty will receive an initial commitment of up to $300 million for investment in core, core-plus and value-added U.S. real estate, with about 80% to be invested in existing office, retail and multifamily properties and as much as 20% for development projects, the webcast showed.
Up to an additional $300 million may be committed to the account during the course of the 10-year contract, with two one-year extensions. TA will co-invest up to 1% of the fund’s initial value of $3 million, Mr. Rovelli said.
Greystar Realty Partners will receive an initial commitment of $150 million, also with the possibility of an additional $150 million to be committed over the 10-year contract, with two one-year extensions. Greystar will purchase land to develop between six and eight “class A” multifamily properties in targeted U.S. urban markets, Mr. Rovelli said.
Greystar will invest up to 5% of the total fund size or about $8 million in current dollars.
TA Realty and Greystar Realty both will continue to manage existing real estate portfolios for the retirement system, which total $75 million and $115 million, respectively.
In private equity, commissioners approved commitments to existing managers Crestview Partners and Bridgepoint Capital. Crestview Partners III, a U.S. middle market buyout fund with a value bias, received a commitment of $75 million, and Bridgepoint Europe V, a growth-biased buyout fund focused on investment in European middle market companies, received commitment of €75 million ($94 million). RSIC previously committed $100 million to Crestview Partners II and $63 million to Bridgepoint Europe IV.
Also, commissioners approved renewing Integrity Asset Management’s contract for five years for management of $320 million in active U.S. small-cap value equities, the webcast showed. Integrity’s contact expires in February, according to meeting materials.