Texas County & District Retirement System, Austin, committed $40 million to Related Real Estate Recovery Fund 2, a transaction report on the $23 billion pension fund’s website said.
The new fund, managed by Related Fund Management, is U.S. focused and will acquire the debt of struggling development and redevelopment projects as well as distressed properties.
The commitment to the recovery fund was the 44th investment or commitment by TCDRS to alternative investment funds in 2014 year-to-date.
The pension fund’s commitments to 31 funds in its private equity, distressed debt and private real estate category, including the Related real estate fund, totaled $1.2 billion.
Hedge fund investments totaled $380 million in 10 strategies.
Three opportunistic credit and direct lending managers received commitments totaling $251 million, the TCDRS transaction report said.