Crow Holdings Capital is looking to raise $400m (€368m) for its retail-only investment fund, Crow Holdings Retail Fund II.
The new value-add fund will invest in existing retail properties in major US markets.
Crow Holdings will consider a variety of retail properties, including smaller regional malls and grocery-anchored retail assets.
It aims to invest in underperforming properties in high-growth regions.
Crow Holdings will co-invest up to 5% of total commitments in the fund, targeting net IRRs of 10-12%.
Leverage on the fund is projected to be around 60%.
The New Mexico Educational Retirement Board is one of its newest investors in the fund, with a $25m commitment.
Mark Canavan, head of real assets at the pension fund, said: “There are two reasons we have invested into this fund.
“One was that this is one of the few retail-only funds being offered in the market, and we are low in our investments in retail.
“Another is that Crow Holdings is a proven manager we have had success with in the past.”
As of the first quarter, the pension fund had invested 3.95% of its assets in retail in its real assets portfolio, according to a pension-fund document.
New Mexico Educational had previously invested $50m in Crow Holdings Realty Partners VI.
IRR since inception has been 8.94%.
The pension fund also made a $35m commitment to the Crow Holdings Realty Fund VII.
The planned capital raise for Retail Fund II would be a significant increase from the $295m raised last year for Retail Fund I.