LOS ANGELES--(BUSINESS WIRE)--Belay Investment Group announced today that the California State Teachers’ Retirement System’s Real Estate Division is moving forward with an additional $100 million commitment to expand investment activities with operating partners currently working with Belay.
In 2016, Belay secured $200 million from CalSTRS and this follow-on $100 million capital commitment strengthens the teachers’ public pension access to real estate operating partners in an effort to gain an edge in a highly competitive market. Belay’s successful program that focuses on investing with local operators and emerging managers was the impetus for CalSTRS’ additional capital commitment which gives the teachers’ pension fund exclusive access to all operating partner deal flow within the current Belay program.
CalSTRS Director of Real Estate Mike DiRé said, “In today’s highly competitive market, to find compelling investment opportunities it is imperative that we align ourselves with programs like those offered by Belay. Often, successful local operators are just not visible to large institutional investors like CalSTRS. Since our initial $200 million capital investment with Belay in 2016, we have been able to support the growth of several local operators, especially in their role as fiduciaries.”
“CalSTRS was an early adopter of capturing the talent and investment capacity of local operators and emerging managers through joint venture programs. For more than a decade we have supported the growth and development of emerging managers in the real estate industry,” DiRé added.
Barry Chase, the Managing Principal and CEO of Belay said: “We are very excited about expanding our relationship with CalSTRS and appreciative of their on-going support of our team and investment strategy. We have worked closely with CalSTRS for the past 12 years and share in the vision that combining an experienced and fiduciary minded investment firm, such as Belay, with local operating partners or emerging managers provides greater access to opportunities, improved risk management, successful execution of business plans, and the potential to enhance investment returns, particularly in this competitive investment environment.”
Belay has invested $120 million of equity on behalf of CalSTRS through programmatic joint venture commitments to three value add operators pursuing niche strategies. The three operators include: a team specialized in urban repositioning strategies targeting retail, multi-family and mixed-use assets in the Southwest; a Hispanic-focused workforce housing specialist capitalizing on the growth of the Hispanic middle class; and, a Portland, Oregon-focused mixed-use developer/operator targeting creative office and multi-family.
Belay retains discretion over all investment and major asset management related decisions but also actively mentors programmatic joint venture partners through the implementation of institutional best practices in areas of investment processes and procedures, corporate governance, accounting and reporting.
As Belay focuses on investment activities primarily for the benefit of CalSTRS, partner Suzanne West will transition to a senior advisory role and continue to play an on-going role in the firm’s growth.
About Belay Investment Group, LLC
Belay Investment Group is a Los Angeles-based Registered Investment Advisor that pursues compelling real estate investment opportunities on behalf of its institutional investors. Belay is wholly owned and operated by its three Managing Principals, who average 25+ years of real estate experience as investors and senior management of institutional investment management and advisory firms.