Key Takeaways
- • New Mexico State Investment Council (SIC) approved a $150m (€138.5m) capital commitment to Acore Credit Partners II, the latest US real estate debt fund from Acore Capital.
- • Acore Credit Partners II is seeking to raise between $1.25bn and $1.5bn, according to Acore's disclosure in the New Mexico SIC meeting document.
- • The fund targets a 10-12% net internal rate of return and an 8-10% net distribution yield.
- • The fund plans to originate transitional commercial real estate whole loans for high-quality, well-capitalised operators and private equity sponsors.
- • The fund has already invested in 15 performing loans made in 2022 and 2023, secured by residential, industrial and commercial properties.
Summary
The New Mexico State Investment Council (SIC) has approved a $150m (€138.5m) capital commitment to Acore Capital's latest US real estate debt fund, according to IPE Real Assets. The sovereign wealth fund said it has placed the capital into Acore Credit Partners II, a vehicle expected to originate transitional commercial real estate whole loans for well-capitalised operators and private equity sponsors.
Acore Capital disclosed in the New Mexico SIC's meeting document that the fund is seeking to raise between $1.25bn and $1.5bn. The fund targets a 10-12% net internal rate of return and a net distribution yield of 8-10%.
According to the report, Acore Credit Partners II has so far invested in an existing portfolio of 15 performing loans, with investments made in 2022 and 2023 amid a changing interest rate and real estate investment environment. The fund's loans will be secured by property types including residential, industrial and commercial buildings.
Acore Capital disclosed in the New Mexico SIC's meeting document that the fund is seeking to raise between $1.25bn and $1.5bn. The fund targets a 10-12% net internal rate of return and a net distribution yield of 8-10%.
According to the report, Acore Credit Partners II has so far invested in an existing portfolio of 15 performing loans, with investments made in 2022 and 2023 amid a changing interest rate and real estate investment environment. The fund's loans will be secured by property types including residential, industrial and commercial buildings.
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