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Pension Funds

Memphis Light, Gas & Water Division increases allocation to TerraCap real estate fund

Memphis Light, Gas & Water Division, Memphis, Tenn., made a follow-on commitment of $5.1 million to TerraCap Partners IV, a real estate fund managed by TerraCap Management, according to recently released pension fund board minutes.

The $1.4 billion pension fund originally committed $25 million to TerraCap Partners IV, its first with the manager, in March 2017.

Investment consultant Gavion recommended the increased commitment to reduce the management fee to 1.25% from 1.5%, the minutes said.

As of Sept. 30, the actual allocation to real estate was 13.5%; the target is 13%.