PSERS invests additional $100m in RE secondaries

PSERS’ real estate secondary and co-investment programme is an effort to reduce fees and bolster relationships.

The Pennsylvania Public School Employees’ Retirement System has invested an additional $100 million in real estate secondaries, according to documents from its October board meeting.

The investment was made in PSERS’ real estate in-house secondary and co-investment programme. In March, the board approved a $100 million investment in the programme, bringing this year’s total to $200 million.

The programme allows PSERS to make secondaries investments and co-investments in real estate funds where PSERS is already an investor. Each investment can be up to $15 million.

PSERS launched the programme in 2012 in an effort to reduce fees, enhance returns and bolster existing relationships.

Investing more via secondaries and co-investments gives the pension “potential for better returns” which has been a “current trend in the industry”, PSERS private markets and real estate managing director Charles Spiller has said.

PSERS also has an in-house secondaries and co-investment programme for private debt, which it committed $100 million to in March.