WSIB commits $500m to M3's Evergreen(2)

The $80.1bn Washington State Investment Board has approved $1.7bn in commitments, including $900m to two RE funds. The pension also committed $600m to private equity funds and $250m to infrastructure and commodities.

The Washington State Investment Board has committed $500 million to Evergreen Real Estate Partners, the fund created by M3 Capital Partners in 2005.

Evergreen Investment Advisors, which runs the fund, has raised more than $1.5 billion in equity commitments. The value-add fund, which invests globally, targets joint ventures with private real estate operating companies.

Washington, which has a real estate portfolio valued at $8.7 billion, committed a total of $900 million to real estate funds last week, including $400 million to Hometown America Holdings. It comes after the pension last month posted a $2.9 billion first quarter loss, including a negative two percent return on its private equity portfolio.

Among the commitments approved include up to €200 million to UK-based Charterhouse Capital Partners’ ninth fund for European buyouts; up to €150 million to German private equity fund Triton Fund III for European investments and up to $50 million to the FountainVest China Growth Capital Fund for growth capital investments in the $50 million to $100 million range.

Earlier this month, Evergreen said it would target Florida investments, commiting $750 million to Palm Beach Gardens, Florida-based real estate developer Kitson & Partners for residential and commercial real estate developments. “In a tight credit market, land owners are looking for certainty,” Kitson & Partners chief executive Syd Kitson said in a statement at the time. He added that the JV was targeting high-quality locations throughout Florida including raw land, entitled land and improved or semi-improved land for residential development.

Washington State also approved a commitment of $250 million to in-house fund Tangible Assets Co-Investment. That fund co-invests in sectors not covered within other asset classes including infrastructure, timber, agriculture, natural resource rights and commodities.