In recent months, real estate has continued to attract significant attention from institutional investors, with consultants playing a crucial role in shaping these allocation strategies. Across public pension and retirement systems in the U.S., substantial commitments have been made toward a variety of real estate funds, indicating an ongoing pursuit of yield and diversification within the sector. Major consulting firms, including The Townsend Group, StepStone Group, Hamilton Lane Advisors, and others, have been at the forefront of steering capital into property investments, from core assets to distressed opportunities.
For example, The Townsend Group facilitated $2.5 billion in real estate allocations, including a notable $1.1 billion commitment from the New York State Common Retirement Fund to various real estate strategies. Similarly, Florida State Board of Administration directed $901 million toward real estate investments across several funds, showcasing the breadth of interest in the sector. These examples highlight a clear strategic focus on real estate among institutional investors, driven by consultants seeking to capture opportunities amid evolving market dynamics.
While the involvement of specific consultants in these investment decisions is not always explicitly confirmed in public documents, it is assumed that they provided guidance or assistance based on their role as private equity or general consultants for the respective institutions.
In this article, we break down the largest public pension allocations to real estate investments from top consultants for the third quarter of 2024. By the end of this list, you’ll have a deeper understanding of which consultants are driving the largest commitments to the real estate sector.
New York State Common Retirement Fund: $1.1B
Florida State Board of Administration: $901M
Virginia Retirement System: $195M
Ohio Police and Fire Pension Fund: $150M
Kansas Public Employees Retirement System: $85M
Los Angeles Fire & Police Pension System: $80M
Teacher Retirement System of Texas: $325M
Rest Super: $271M
New Jersey Division of Investment: $250M
Santa Barbara County Employees' Retirement System: $20M
District of Columbia Retirement Board: $100M
San Diego City Employees' Retirement System: $75M
San Joaquin County Employees Retirement Association: $50M
Newport News Employees Retirement Fund: 15M
Montana Board of Investments: $150M
Vermont Pension Investment Committee: $35M
State of Wisconsin Investment Board: $90M
Los Angeles Water & Power Employees' Retirement Plan: $75M
Kern County Employees' Retirement Association: $140M
Public Employees' Retirement System of Mississippi: $75M
North Dakota State Investment Board: $35M
South Carolina Retirement System Investment Commission (RSIC): $100M
San Francisco Employees' Retirement System: $50M
University of Michigan Investment Office: $22.8M
Alameda County Employees' Retirement Association
Seattle City Employees Retirement System
School Employees Retirement System of Ohio (OHSERS): $50M
Dallas-Fort Worth Airport Board Retirement Plan: $10M
City of Fort Lauderdale Police & Firefighters' Retirement System: $5M
The private real estate allocations in Q3 2024 underscore the growing significance of real estate as a key asset class for institutional investors seeking stability, yield, and diversification. From core investments to distressed opportunities, consultants have been instrumental in steering clients toward funds that align with their investment objectives. As market conditions continue to shift, real estate remains a resilient and attractive option, reinforcing its role as a cornerstone in the strategic portfolios of public pension and retirement systems.
To explore more consultants and their private real estate allocations, book a demo of Dakota Marketplace!
Written By: Koncheng Moua, Director of Data Management and Strategy
Koncheng Moua is the Director of Data Management and Strategy at Dakota.
October 16, 2024
September 26, 2024
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