Connecticut Pension Considers $200M Investment in Blue Owl Real Estate

The Connecticut Retirement Plans and Trust Funds (CRPTF) is weighing a $200 million investment in the Blue Owl Real Estate Fund VI, according to meeting information released by Treasurer Erick Russell’s office.

The fund, which is targeting up to $4 billion and a hard cap of $5 billion, is being raised by existing manager Blue Owl Real Estate. The fund focuses on a value-add, closed-end strategy targeting investments in freestanding, single-tenant, net leased commercial properties occupied by investment-grade credit tenants with long-term contracts that include annual rent escalations.

The fund will invest primarily in the United States, but it may also invest up to 25% in Canada and 5% outside of North America if such properties are part of a portfolio acquisition of US and/or Canadian assets.

In 2019, the $45 billion pension fund made a $100 million commitment to the Oak Street Real Estate Capital Net Lease Property Fund (rebranded Blue Owl Real Estate Net Lease Property Fund).

The overall fund’s asset composition is now underweight alternative assets. The current allocations are 8% real estate (10% objective); 2% infrastructure (7% target); 11% private equity (15% target); 4% private credit (10% target); and 4% risk management (5% target).