Ares Management Corporation’s fifth European real estate fund has raised €1.8bn at close, exceeding its fundraising target by 42%.

The amount raised by Ares European Real Estate Fund V (EF V) exceeded the target of €1.25bn, making it the manager’s largest real estate private equity fund.

The predecessor Ares European Real Estate Fund IV fund raised €1.1bn in December 2014.

The EF V fund targets investments in residential, office, industrial and mixed-use assets, predominantly located in the largest and most liquid European markets including Germany, France, the UK and Spain.

The manager said EF V attracted a broad and diverse group of both existing and new investors, including pension funds, insurance companies, sovereign wealth funds, endowments, asset managers, private banks and family offices.

IPE Real Assets previously reported that the Illinois Municipal Retirement Fund and Texas Permanent School Fund each made a commitment into the fund.

Ares said 40% of the fund’s equity has already been committed to nine investments across a diverse portfolio of properties weighted towards the residential and office sectors in markets such as Germany, Spain, Ireland, the Netherlands, Austria and the UK.

The fund recently teamed up with London property investor Black Mountain Partners to buy the 11-storey office and retail 68 King William Street building.