CalSTRS committed a total of $6.1 billion to new and existing real estate managers, private equity funds and co-investments, according to recently released reports on investment activity in the last half of 2017.
The $224.4 billion California State Teachers' Retirement System, West Sacramento, committed £500 million ($697 million) for a separate account with Principal Real Estate Investors called CP Logistics UK to invest in industrial assets in the U.K. CalSTRS also committed $500 million to J.P. Morgan Asset Management (JPM) for a core real estate joint venture; $495 million to middle-market manager PCCP for PacificCal Debt II, a core real estate debt joint venture; $400 million to Blackstone PP Europe, a value-added open-end real estate fund managed by Blackstone Group; and $300 million to Beacon Capital Strategic Partners VIII, an office-sector real estate fund managed by Beacon Capital Partners.
CalSTRS has invested with Principal Real Estate Investors, JPMAM, PCCP and Beacon in the past, including joint ventures.
Also in real estate, it committed $200 million each to BlackRock (BLK) for another opportunistic real estate joint venture and Partners Group for a co-investment alongside Partners Group Golden Coast. CalSTRS also committed another $200 million to Partners Group for Partners Group Real Estate Secondary 2017, a secondary market fund. The pension fund committed $157 million to a separate account investing in core office properties with CBRE Global Investors. CalSTRS also committed $100 million to AEW Capital Management's pan-Asia value-added real estate fund, AEW Value Investors Asia III, and committed an additional $100 million co-invest alongside the fund. The pension fund committed $150 million to real estate manager CrossHarbor Capital Partners' credit fund, CrossHarbor Strategic Debt Fund, and made a $21 million co-investment with CrossHarbor.
CalSTRS also committed €125 million ($154 million) to European real estate fund Meyer Bergman European Retail Partners III, $100 million to Artemis Real Estate Partners Healthcare Fund I and $100 million to LaSalle Asia Opportunity V, the latest closed-end pan-Asia opportunistic fund managed by LaSalle Investment Management.
In private equity, CalSTRS committed $350 million to Olympus Growth Fund VII, a middle-market buyout fund managed by Olympus Partners; $250 million to AlpInvest Co-Investment Fund VII, managed by the Carlyle Group's alternative investment secondary market and co-investment group AlpInvest Partners; and $250 million to GSO Capital Solutions Fund III, managed by Blackstone Group's credit unit GSO Capital Partners.
CalSTRS also committed $200 million each to Castlelake V, a middle-market distressed debt fund; Francisco Partners V, a middle-market technology buyout fund managed by Francisco Partners Management; TPG Growth Fund IV, a middle-market buyout fund; and Affinity Asia Pacific Fund V, a large buyout fund managed by Affinity Equity Partners investing in Korea, Australia, New Zealand, Southeast Asia and China. CalSTRS also committed $130 million to Spectrum Equity VIII, a growth equity fund managed by Spectrum Equity Management; £67.5 million to middle-market distressed debt and special situations fund Alchemy Special Opportunities Fund IV, managed by Alchemy Partners, €50 million to Summit Partners Europe Growth Equity Fund II, a private equity fund taking minority stakes in growth companies; $50 million to large buyout fund Carlyle Asia Partners V, managed by Carlyle Group; and $40 million to Valor Equity Partners Fund IV, a small buyout fund.
CalSTRS also made a $29 million co-investment alongside Summit Partners in Harvey Performance Co., a Rowley, Mass.-based cutting tools company. CalSTRS' other co-investments were a $60 million commitment to a health-care co-investment, WCAS UCAP Co-Investment, managed by private equity firm Welsh, Carson, Anderson & Stowe; $58 million with Energy Capital Partners in Volt Parent; and $46 million with BC Partners' BC European Capital X – Shawbrook Co-Investment.