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Texas TRS commits $1 billion to real estate funds in October

IDR's closed-end core fund took the largest allocation, and TRS is majority founding investor in an ODCE-tracking index fund from the manager.

$500MTRS commitment to IDR Strategic Opportunities Fund

At a glance

  1. Half went to IDR Strategic Opportunities Fund, a closed-end core strategy that received $500 million.
  2. For advisors and allocators pricing a core real estate sleeve, the IDR fund offers an index-replication option to benchmark a discretionary separate account.
  3. Almanac Realty Securities X, a program of NB Alternatives Advisers, received $200 million for a closed-end, value-added fund.

The Teacher Retirement System of Texas committed $1 billion to real estate funds in October, IREI reported, citing official investment correspondence.

Half went to IDR Strategic Opportunities Fund, a closed-end core strategy that received $500 million. IDR Investment Management, the manager, builds index funds for the private equity real estate asset class. The fund pursues targeted secondary-market trades meant to capture liquidity and valuation imbalances in US institutional private real estate.

For advisors and allocators pricing a core real estate sleeve, the IDR fund offers an index-replication option to benchmark a discretionary separate account. The main due-diligence item is tracking difference against the NCREIF NFI-ODCE Index. IREI, citing its Ask IRE.IQ market-intelligence tool, identifies TRS as majority founding investor in IDR's Core Property Index Fund, one of the first open-end private equity real estate funds designed to track that index.

Almanac Realty Securities X, a program of NB Alternatives Advisers, received $200 million for a closed-end, value-added fund. It supplies growth capital to private and public real estate companies to capture the continued shift in US ownership toward integrated entities. An affiliated ARS X offering received $100 million.

PB VII Coinvest I, a Pennybacker Capital program, took $150 million for a closed-end, value-added fund investing across US property types.

The four commitments named in the correspondence sum to $950 million of the $1 billion October total. IDR's commitment is the largest single allocation.

IDR Strategic Opportunities Fund reported $500 million sold, with a first sale dated Oct. 9 on an Oct. 27 Form D, as Private Wealth Daily previously reported. That suggests the Texas pension anchored the offering.

IDR fund took half of TRS's $1B October commitment

Capital committed by Texas TRS to named real estate funds, October ($M)

  • IDR Strategic Opportunities$500M
  • Almanac Realty Securities X$200M
  • PB VII Coinvest I$150M
  • Affiliated ARS X offering$100M
Source: IREI, citing official investment correspondence
Show as table
ItemValue ($M)
IDR Strategic Opportunities$500M
Almanac Realty Securities X$200M
PB VII Coinvest I$150M
Affiliated ARS X offering$100M

Reported by the Who's investing desk from IREI and Private Wealth Daily archive. Published . Corrections

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