Fundamental Advisors has raised close to $1bn (€894m) for a real assets fund.

Fundamental Partners III secured $993m from state and corporate pension funds, foundations, financial institutions and ultra-high-net-worth platforms.

The fund will invest in municipal and public purpose real assets, including affordable and student housing, senior care, infrastructure, alternative energy and hospitality.

The manager said the capital raise exceeded its target and that most of its existing investors committed to the fund.

“As private capital takes on an increasingly crucial role in developing, revitalising, and sustaining critical community assets, the differentiated approach that we pioneered over a decade ago is more vital than ever,” said Laurence Gottlieb, chairman and chief executive of Fundamental Advisors.

“Having invested in community assets and essential services for most of my career, the opportunities in today’s market are increasingly compelling.”