Institutional Investor

In a bid to reduce fees and bolster existing relationships, the US pension will put $100m to work in both its real estate and private debt co-investment and secondaries programmes.

The Zug-based private markets investment firm described in its latest research how it is placing its current real estate investing emphasis on investments in debt and secondaries, both direct and indirect, as it avoids a “herding mentality”.

Several US pension funds have adopted a similar strategy in an effort to cut ties with GPs and eliminate management fees.

Three months after announcing its first ever private equity commitments, the $27bn pension is mulling a move into secondaries to diversify its vintage year exposure.