Austin Fire Fighters ups RE exposure via Partners Group

The Texas pension needs to increase its exposure to non-core real estate on advice from consultant Meketa Investment Group.

Austin Fire Fighters Relief & Retirement System has committed to Partners Group‘s latest real estate secondaries fund as part an effort to re-balance its portfolio.

According to minutes from the pension’s January meeting, treasurer Art Alfaro motioned a $15 million commitment to Partners Group Real Estate Secondary 2017. The motion was unanimously agreed by the board.

The commitment came after consultant Meketa Investment Group recommended the pension increase its exposure to non-core real estate, according to the minutes. Partners Group, Landmark Partners and direct investment firm Crow Holdings Capital were listed as the top three candidates to help it achieve this.

Austin has 23 percent of its portfolio exposed to private equity and 8 percent to real estate, according to data from Private Equity International, compared with target allocations of 15 percent and 10 percent.

The pension has made private equity secondaries investments before, most recently in Deutsche Bank Asset Management’s $1.65 billion third fund, which is now advised by Glendower Capital.

Partners’ latest real estate secondaries fund launched in October 2016 and is seeking €2 billion, according to data from sister publication PEREThe fund had raised €1.2 billion as of August from investors including El Paso Firemen and Policemen’s Pension and East Riding of Yorkshire County Council Pension Fund, as Secondaries Investor reported.

Landmark is also in market with its eighth real estate secondaries fund. The firm is seeking $2 billion and exceeded the target in December, 14 months after launching the vehicle.