Zoe Hughes

The Teacher Retirement System of Texas has hired former Summit Properties president Steve LeBlanc to lead its real asset and private equity portfolios. Lee Partridge, the pension's strategic research managing director has been promoted to deputy chief investment officer.

The New York-based private equity firm said one-third of the private companies in its private equity portfolio faced write-downs of some kind, as president Tony James revealed a $68m Q3 private equity loss.

When Barack Obama is sworn into the White House in 2009, private equity firms can expect some changes, among them likely increases to capital gains and carried interest taxation. However his win could also prompt a greater willingness by overseas investors to invest in the US.

Real estate was the only asset class to make a positive return for the $29.5bn pension fund, however allocations to private equity real estate have now topped 10.5% against a target of 8%.

The $1.7bn pension started investing in real estate just three years ago, however it is now considering increasing its target allocation by 3% and investing in international real estate for the first time. The plan said it was 'shutting off two-thirds' of the world by focusing on the US.

The Canadian pension has set aside an additional C$1.4bn to invest with opportunistic fund managers, and directly, targeting US and UK distressed real estate.

The German commercial real estate lender is the first private sector group to ask for help from Germany’s €500bn bailout fund as it waits for the arrival of a previously agreed €50bn rescue package.

The alternatives arm of Deutsche Bank, a significant player in infrastructure investment, has followed GIC Real Estate in buying a ‘significant minority’ interest in Rosen Real Estate Securities. The deal is expected to close later this year.

Despite the turbulence of the credit markets and its impact on Europe’s property markets, LPs will increase their allocations to real estate in the future, according to a report by CBRE. In the long-run, all investors will target an extra €250bn to the asset class.

The bailout of the German commercial property lender, Hypo Real Estate - which is partially owned by private equity firms JC Flowers and Grove International - could prompt investors to wait for further distress to enter the market, according to ING Real Estate's European chief investment officer Will Rowson at ExpoReal.