Minnesota invests in Landmark and Carlyle funds for first time

Minnesota State Board of Investment has expanded its real estate manager line-up by hiring Landmark Partners and The Carlyle Group for the first time.

The pension fund said it is investing $150m (€125m) in the Landmark Real Estate Fund VIII and the same amount in Carlyle Realty Partners VIII.

Landmark is aiming to raise a total of $2bn of equity – with a $2.75bn hard cap – ahead of the fund’s final closing expected before the end of the year.

The fund’s is target net returns of 14% to 16% by acquiring interests in funds, joint ventures and companies on the secondary market.

Carlyle VIII is an opportunity fund, targeting gross returns of 16% to 20%.

It aims to provide exposure to types of property not typically held by major US pension funds — including senior and manufacturing housing and for-sale residential.

Minnesota has approved two other commitments with existing real estate managers, investing $75m in the AG Europe Realty Fund II and Blackstone Real Estate Partners Asia II.

The manager of the first fund, Angelo Gordon, will be looking to invest mostly in the UK, Germany, France and the Netherlands for its Realty Fund II — a value-add fund targeting office, retail, hotels, apartments and industrial.

Blackstone is targeting a $5bn capital raise for its Asia II opportunity fund investing in China, India, Japan and Australia.

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