Firms & Funds

Nebraska backs Rockwood XI, which offers fee discounts for certain LPs

-
Nebraska Investment Council, private equity, pension fund
Prof. Stephen Baenziger holds a stalk of wheat at the greenhouse of the wheat-breeding program at the Nebraska university in Lincoln on May 5, 2008. Reuters/Carlos Barria
  • Why is this important: Early-close investors, repeat investors and large investors will receive a discount on the pool’s management fees.
  • AUM: $25.6 bln
  • Target IRR: 12-14 pct
  • Contact NIC: nic.info@nebraska.gov

Nebraska Investment Council at its March meeting committed $40 million to Rockwood Capital’s 11th fund.

Rockwood XI invests in real estate in the U.S. and focuses on “office and other workspace, multifamily residential, retail and hotel assets.” Fund XI is targeting $1.25 billion, Nebraska board documents show.

NIC previously invested in Rockwood funds. In 2012, it committed $20 million to its ninth fund, and in 2016 it pledged $40 million to Rockwood X, an NIC memo says.

Fund XI is targeting a net internal rate of return of 12 percent to 14 percent. The fund will charge 20 percent carried interest.

Aggregated projected gross returns for Rockwood’s 10 real estate funds is 15.4 percent IRR, per presentation documents.

“The fund series on average performs at its target with consistency over time,” according to Chae Hong, a partner with Aon, Nebraska’s investment consultant, in a memo.

The Fund XI investment period is three years and the term of the pool is nine years, the documents said.

Early-close investors, repeat investors and large investors will receive a discount on the pool’s management fees, which reach as high as 1.4 percent, the documents said.