Investor watch: Commitments to credit strategies rise

Pension funds have committed $935bn to managers in the first half of this year.

CPP Investments, New York State Teachers Retirement System and the Pennsylvania Public School Employees’ Retirement System were the most active allocators to commercial real estate debt funds in the first half of the year. 

The pension funds committed a total of $935 billion to managers, with CPP Investments making a $585 million investment in Harbor Group International’s HGI Multifamily Credit Fund. New York State Teachers committed $150 million to Artemis Real Estate Partners via a separate account, while Pennsylvania Public schools allocated $200 million to PIMCO Commercial Real Estate Debt Fund II.

The commitments come at a time when more managers are in the market with debt strategies, including Berkshire Residential Investments, Bridge Residential Group and Madison Realty Capital. FCP is also marketing its fourth credit fund, while Related Fund Management and GID are also seeking investors for debt-focused strategies.