Iowa Public Employees sets searches for real estate debt, corporate debt managers

Iowa Public Employees’ Retirement System, Des Moines, is searching for managers to run a total of up to $750 million in real estate debt and private corporate debt portfolios, according to two RFPs posted on the $28.5 billion pension fund’s website.

The first RFP is for one or two firms to act as strategic partners “to actively originate, acquire, finance, manage and dispose of private commercial real estate debt investments, which primarily include mezzanine debt, B-notes within commercial mortgage-backed securities, and first mortgages, but may include some structured credit and preferred equity investments.” The total portfolio to be managed would be about $250 million.

The second RFP is for one or two firms to run a separate account or customized “fund of one” in private corporate debt. Each manager would run about $250 million.

Karl Koch, chief investment officer, in a March 29 call, did not have information on a timeline for a hiring decision or funding sources for either search. He could not be immediately reached Friday.

The real estate debt RFP and the corporate debt RFP are available on the pension fund’s website. Proposals for both RFPs are due at 3 p.m. CDT on June 2.

Investment consultant Wilshire Associates is assisting.