AXA Investment Managers-Real Assets is to increase its investment in US loans for its latest debt fund.

The investment manager said it raised an initial €1.4bn for its Commercial Real Estate Senior 10 vehicle.

The vehicle has an initial mandate to invest in US loans, with an allocation of up to 25%.

The investment manager said 12 institutional investors, including European countries, backed the vehicle.

A final close is expected in the first half of this year.

Timothé Rauly, head of CRE finance, said that, by increasing the allocation of the fund’s investment into the US debt market, the firm was responding to growing client appetite.

The size of commitments, Rauly said, demonstrates the growing appetite for commercial real estate debt.

The fund takes the AXA IM-Real Assets debt platform to a total of €13bn of commitments.