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Alternative Assets  + Real Estate  | 
Virginia Retirement Adds $250M to RE Credit Strategies

Virginia Retirement Adds $250M to RE Credit

The Virginia Retirement System added a real estate credit fund to its alternative investment portfolio early this month, according to transaction data.

The $110 billion retirement system has committed $250 million to ACORE Credit Partners II, a closed-end fund that invests in newly issued mortgages secured by transitional commercial real estate.

The strategy targets returns by originating transitional commercial real estate whole loans for high quality, well-capitalized operators and private equity sponsors, many of whom are repeat borrowers.

The move comes after the retirement system’s current private credit portfolio increased by more than 10% in the fiscal year ending January 31, as well as the hiring of Ares Management for a secondary mandate.

Last month, the New Mexico State Investment Council made an equal-sized investment to the real estate debt fund run by San Francisco-based ACORE Capital.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.