By Muskan Arora
The $27bn Kansas Public Employees
Retirement System disclosed private equity pacing plans for 2025, alongside committing
$170m to two value-add real estate funds.
Kansas
PERS returned 1.6% in the first quarter of the year, against a benchmark of
1.3%.
The Tri-state based plan, along with consultant
Mercer, is targeting an allocation ranging between $650m to $700m across six or
eight funds, as per the recent meeting materials.
Individual ticket size would range from
$90m to $120m.
This decision will aid the system to
maintain the new target allocation of 11%, which was previously increased from
9%. So far, the plan has made $555m allocation across eight funds in year.
Kansas PERS allocates 10% to its private equity sleeve, as of September 30.
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Further, the meeting documents revealed the system’s plan to allocate up to $450m in its real estate portfolio and up to $625m in its infrastructure portfolio next year.
Within real estate, the system is bullish
towards non-core funds as it plans to commit between $200m and $300m whereas
for core funds it plans to commit for $150m.
However, within infrastructure, which is a
part the pension plan’s real assets portfolio – the system considers committing up to $400m to its exposure to existing funds in the portfolio with an additional $225m
bucketed for new fund relationships.
New allocations
In the meeting, the system committed $85 to
Principal Data Center Growth & Income Fund, a non-core real estate fund.
The fund will invest in existing data center
assets across the US.
Additionally, the system committed $85m to LBS
Logistics Value Fund X, a non-core industrial fund focused on the US.
The system, along with consultant Townsend, made
new allocations to push towards the target allocation of 75% core and 25% non-core.
