S
an Bernardino County Employees Retirement Association is poised to invest $75m (€64.8m) in Kayne Anderson's seventh value-add real estate fund, Partners VII. The pension fund expects to commit the capital after a thorough evaluation of the investment opportunity.

    The fund manager has already secured a $50m co-investment commitment from other investors for Partners VII. The fund plans to allocate around 80% of its capital towards medical offices and student housing, with the remaining 20% targeting senior housing and light industrial properties.

    Kayne Anderson is seeking to raise $3bn for Partners VII, aiming to reach a final closing by the end of this year or early 2025. San Bernardino County has previously invested in two earlier Kayne Anderson funds, which generated net internal rates of return of 9% and 13%.

    This planned investment would be the pension fund's first new real estate investment of 2025, with a target allocation of $145m to the asset class this year. Real estate currently accounts for 3.8% of San Bernardino County's overall portfolio, below its 5% target allocation.

    The pension fund is also considering investing in a European real estate debt fund later this year, pending board approval.