Hawaii Employees' Retirement System, Honolulu, committed up to $50 million to Cerberus Institutional Real Estate Partners IV, managed by Cerberus Real Estate Capital Management, said Vijoy Chattergy, chief investment officer of the $14 billion pension fund.
The real estate fund will make distressed debt investments in non-performing loans, commercial mortgage-backed securities, and residential mortgage-backed securities, splitting its investments between the U.S. and Western Europe.
It is a new relationship.
Separately, the pension fund removed Stafford Capital Partners, manager of its Hawaii targeted investment program, from watch status.
The $25 million venture capital fund of funds was put on watch for organizational changes in 2014 when Macquarie Funds Group, the former manager, was sold to Stafford.
Mr. Chattergy said the pension fund is happy with the progress that has been made since the sale.
