Searches and Hires

Texas Permanent School Fund earmarks up to $300 million for 4 real estate funds

The $33 billion Texas Permanent School Fund committed a total of up to $300 million to four real estate funds run by existing managers.

At a meeting Friday, the Texas State Board of Education, which oversees investment of the Permanent School Fund, approved the recommendations of the Committee on School Finance/Permanent School Fund, state board spokeswoman Debbie Ratcliffe confirmed in an email.

The following strategies each received commitments of up to $75 million, a webcast of Thursday's finance committee showed:

  • Blackstone Real Estate Partners IX is a global fund that invests mostly in the U.S. but also buys property in Europe and Asia, John Grubenman, PSF's director of private markets, told finance committee members.
  • KKR Real Estate Partners, a new fund being launched by KKR & Co.'s real estate team, will focus on large, Pan-Asian deals.
  • PAG Special Situations Fund III, managed by PAG Enhanced Credit Management, also is Asia-focused but will seek much smaller real estate deals than the KKR fund, Mr. Grubenman said.
  • Rockpoint Real Estate Fund VI will invest in three property types — office, hospitality and multifamily — mostly in large U.S. markets.