The Indiana Public Employees’ Retirement Fund has committed more than $300 million to private equity and real estate funds in the past month.
The pension, which reported assets of $15.7 billion as of 30 June, 2008, committed $75 million to Mesa West Real Estate Income Fund II.
Mesa West is expecting to close its second property debt fund in the coming months, according to people familiar with the matter, after LPs in the vehicle gave the firm the right to seek additional capital commitments owing to over-subscription. According to various media reports, Mesa West is targeting up to $500 million for the fund.
Indiana also committed $75 million to Prima Mortgage Investment Trust, as well as €30 million to German buyout firm Triton Advisers’ third fund and $40 million to US mid-market mezzanine firm Falcon Strategic Partners’ third fund, which is targeting $750 million.
Indiana PERF also committed $100 million to the Indiana Coinvestment Fund, which is a joint programme between the pension and Credit Suisse.
Boston-based Falcon takes a more active role in its mezzanine business than a traditional lender, according to minutes from a New Mexico State Investment Council meeting from September. New Mexico SIC committed $25 million to Falcon on a recommendation from its private equity consultant Aldus Equity.
Indiana has a target allocation to private equity and real estate of 10 percent, with a maximum of 15 percent.