Ares Management is planning a $1bn (€922m) capital raise for its latest US value-added real estate fund, according to one of its investors.

The Ares US Real Estate Fund IX has attracted $75m from the Texas Permanent School Fund, according to a board meeting document.

It was stated during the board meeting that Ares will co-invest $25m or 2.5% of the total capital raise.

Last month, IPE Real Estate reported that the Pennsylvania Public School Employees’ Retirement System had committed $100m to the fund.

According to Texas Permenant board meeting documents, Fund VIII produced a 12% return on a number of assets that have been sold. Texas Permanent committed $75m to this fund.

According to real estate consultant Courtland Partners, the performance of Fund VIII places it into the second quartile of the seven funds that Texas Permanent has invested in since 2014.

Ares, which did not comment, is targeting a net internal rate of return (IRR) of between 10% and 12% for Fund IX.

It will invest in the four main property types, with a focus on apartments

There will be two groups of target markets: major cities, including New York, Los Angeles, Boston, San Francisco and Chicago, and growth markets such Austin, Atlanta, Dallas, Houston and Miami.

Texas Permanent also announced at its board meeting that it was investing $25m in a $300m senior housing portfolio.

It is the first time that Texas Permanent has invested with Columbia Pacific Advisors.

The investor hope to make a return of 20% on the 16-asset portfolio, which as a loan-to-value ratio of 71%.