BCI and partners’ real estate fund completes $805 million closing, PSP invests in insurance-linked strategy

A real estate fund created by the British Columbia Investment Management Corp., QuadReal Property Group and RBC Global Asset Management Inc. is receiving $805 million in equity commitments from Canadian institutional and individual investors.

The second round, which closed on Oct. 30, 2020, exceeded subscription targets and comes on the heels of the initial closing of $1.25 billion completed on Oct. 31, 2019. The total assets under management for the fund now sits at just over $2 billion.

“We experienced exceptional interest from investors who recognize the long-term benefit of adding private market assets such as commercial real estate to their investment portfolio,” said Michael Kitt, head of private markets and real estate equity investments at RBC Global Asset Management, in the release.

“We view the fund as a potential stabilizing component for portfolios that can provide investors with consistent yield. Exceeding our subscription target against a backdrop of pandemic-related uncertainty demonstrates the confidence investors have in both the fund and its alignment with the deep and experienced team at BCI and QuadReal.”

In other investment news, the Public Sector Pension Investment Board is providing Integral ILS Ltd. with significant limited-partnership commitments to launch a new dedicated strategy focused predominantly on natural catastrophe-linked reinsurance and insurance transactions.

Integral is a new Bermuda-based independent alternative fund manager focused on insurance-linked strategies.

“The Integral mandate represents PSP Investments’ first ILS allocation as part of our alternative risk premium strategy,” said Eduard van Gelderen, senior vice-president and chief investment officer of the PSP. “ILS is an attractive asset class given its low correlation and diversification benefits for our portfolio. We are excited to enter into a long-term partnership with such an experienced and well-regarded team in the space.”