Texas pension fund allocates capital to Invesco’s Asia real estate fund

Cityscape of Dallas, Texas. Photo: Pixabay

The Employees Retirement System of Texas (ERS) approved capital commitments worth a total of $246 million to global fund managers, including Invesco, in March.

The $31.3 billion pension fund approved an allocation of $75 million to Invesco Real Estate Asia Fund. The latest commitment was a follow-on investment in the core, open-end realty fund, ERS said in an investment report.

Another pension fund, Teacher Retirement System of Texas, had in March 2020 approved a $100 million commitment to Invesco Real Estate Asia Fund IV, followed by another $50 million to a sidecar vehicle two months later.

Invesco is understood to have held the first close for the fund and its sidecar vehicle at $500 million. Maine Public Employees Retirement System had also backed the fund.

Invesco’s fourth Asia real estate fund targets core and core-plus investments across the Asia Pacific region, with a key focus on major cities in Australia, Japan, and Korea.

In March, ERS also committed A$27.36 million ($21.15 million) to QIC Global Infrastructure Fund and $25 million to ERS Private Equity Emerging Manager III, a 2019-vintage fund of funds managed by Barings under ERS’s Emerging Manager programme.

Other commitments ERS made in March were into undisclosed co-investment vehicles in infrastructure, real estate and private equity.

Australia-based QIC is an investment manager founded in 1991 by the Queensland government to invest in alternative assets with a focus on infrastructure, real estate and private capital. The firm managed A$85 billion ($65 billion) in assets by the end of last year.

Within ERS’ Emerging Manager programme, which invests in private investment managers with assets under management of $2 billion or less, ERS Private Equity Emerging Manager III provides seed and strategic capital to emerging private equity managers with less than $500 million in assets under management.

ERS had committed its first $25 million to ERS Private Equity Emerging Manager III by August 2020. The first fund in the series was a $50 million mandate, followed by a $25 million Fund II.

“As a subset of the strategy, Barings focuses on investing with first-time funds and anchoring first closes,” ERS said in a September 2020 update, adding that Barings made five investments totalling $12.9 million in commitments during the calendar year 2020, including investments in healthcare, information technology and energy.

As of August last year, ERS has invested $475.5 million in private equity through its Emerging Manager programme and has generated a net internal rate of return (IRR) of 12.38%.

For this calendar year, the pension fund said it targeted to score four to six new investments in lower middle-market buyouts and growth emerging managers.

As of February this year, ERS had a 16% allocation to private equity, 11% to real estate, and 4% to infrastructure.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.