Connecticut plans re-up to Blackstone real estate fund

Connecticut Treasurer Denise Nappier presented the fund to the pension’s Investment Advisory Council at its Feb. 11 meeting. Nappier, who manages the state’s investment assets, will consider re-upping as much as $100 million to Blackstone Real Estate Partners Fund VIII, according to Barrett.

Connecticut has committed $225 million across three earlier Blackstone funds, including Blackstone Real Estate Partners VI and Blackstone Real Estate Partners Europe III.

“Blackstone VI continues to be a large contributor to performance over the last five years,” according to a June 30 Townsend Group report that details the retirement system’s real estate portfolio. That fund, a $10.9 billion 2007 vintage, netted a 14 percent IRR and 1.9x equity multiple as of Sept. 30, according to New Jersey State Investment Council documents.

Blackstone set a $13 billion target for investments opportunistically in out-of-favor and undermanaged properties, typically in the U.S., according to New Jersey documents. New Jersey committed $100 million to the fund in February.

In addition to Blackstone VIII, Nappier also presented a possible $40 million commitment to Landmark Real Estate Partners VII, an opportunistic real estate secondaries fund managed Landmark Realty Advisors.

Connecticut began investing in real estate in 1982. The portfolio was valued at $1.5 billion as of June 30.