“ATRS tries to speak little and make money,” George Hopkins told Secondaries Investor. “That is why ATRS invests in Landmark and appreciates the secondaries market.”
The $27 billion pension’s investment in Landmark Partners Real Estate Fund VIII is lower than its $40 million commitment to Landmark’s 2010-vintage Real Estate Fund VI, which closed below target on $718 million, according to data from sister title PERE.
“Any investment manager that quietly goes about its business with skill and makes good returns fits with ATRS goals,” Hopkins said.
As of 31 August, 10.4 percent of ATRS’s funds were allocated to private equity, marginally above its target of 10 percent, with 8.86 percent going to real estate, below its aim of 15 percent.
With a target of $2 billion, Landmark’s eighth real estate fund is the largest ever of its class and twice the size of Fund VII, which closed on its $1.6 billion hard-cap in May 2015 after 14 months of fundraising, according to PERE data.
According to a 3 November presentation to the San Diego City Employees’ Retirement System, Landmark “expects to capitalise on the inefficiency and illiquidity of the secondary real estate market by acquiring limited partnership interests in institutional properties at a discount to market value”.
The firm particularly focuses on funds that are “committed and seasoned”, according to the presentation.
Other investors in Fund VIII include San Diego City Employees’ Retirement System ($20 million) and Nebraska Investment Council ($40 million), according to PERE.
There were at least four dedicated real estate secondaries funds seeking a combined $5.5 billion as of May, according to PERE. These include Metropolitan Real Estate Partners Secondaries Fund II, which is seeking $1 billion, and Partners Group Real Estate Secondary 2017, which is understood to be seeking at least $2 billion.
Landmark Partners was formed in 1989 and has sponsored 29 private equity and real estate funds with committed capital of $15.5 billion, according to its website.