PERS approves $75M pacing commitments to Blue Owl and Crow Holdings value‑add funds

The Public Employees Retirement System investment committee approved staff recommendations to add two value‑add real estate managers and to commit pacing capital consistent with the most recent pacing study. Staff recommended $75 million commitments to each Blue Owl Real Estate Fund 7 (net‑lease strategy targeting an 8% preferred annual return) and Crow Holdings Fund 11 (diversified value‑add strategy targeting ~12% IRR). Both managers presented strategy details, track records and sector allocations.

Blue Owl described a net‑lease approach focused on investment‑grade tenants, long‑duration leases (targeting roughly 15‑year initial terms), and a disciplined cap‑rate policy to preserve downside protection. Crow Holdings emphasized niche sectors — manufactured housing, convenience/gas, self‑storage, industrial and apartments — and a multi‑deal aggregation strategy to generate returns; Crow said it expects a $1 billion first close and a roughly $3 billion target fund.

After presentations, a motion to approve the two managers and commitments was moved, seconded and approved by voice vote. Staff indicated the commitments align with the real estate pacing plan and will be subject to standard due diligence and final legal documents.