By Muskan Arora
The $44.7B Iowa Public Employees’ Retirement System is reassessing its private real asset credit portfolio investments over the next few months.
The real assets pacing for this year was set at $900M, which leaves the pension plan with $700M to allocate for the remaining year. Whereas, the real assets private credit’s pacing was at $550M, and the plan still has $450M left to commit this year.
According to the plan’s private real estate equity plans, the pension will also review core real estate managers’ responses over the next few months.
The restructuring of the portfolio would also include finalizing allocation decisions around value-add and triple net lease real estate strategies, according to the recent investment meeting materials. Real estate managers on the roster include Invesco, Kayne Anderson – KAREP VII and UBS Realty among others.
The pension’s real estate allocations are focused on apartments (39%) and industrial sectors (35%) with a smaller portion to office (10%) and retail (15%).
Within the RA portfolio, the pension plan, along with consultant Wilshire, is focused on managing the liquidation process timber and farmland portfolios and finalizing the next steps for its infrastructure allocations. It’s also looking to liquidate Clarion Partners, which manages 2.17% or $53.5M of the plan’s $2.4B real estate portfolio, due to the manager’s performance issues.
As of Mar. 31, 2025, Iowa PERS has allocated 6.95% or $3.1B to its private real assets’ portfolio against a benchmark of 9.5%.
