Florida State Board of Administration and Connecticut Retirement Plans and Trust Funds are among a number of investors to have committed to Starwood Capital Group’s latest global opportunity fund.

They are joining an unnamed Asian sovereign wealth fund and several corporate and public pension plans, including South Dakota Retirement System and Texas County & District Retirement System, in a first close that could reach up to $2bn (€1.47bn).

According to board meeting documents from Connecticut, Starwood was due this week to hold a first close on its 10th global fund, for which the manager is hoping to raise between $4bn and $5bn eventually.

Starwood declined to comment.

Florida State Board of Administration and Connecticut Retirement Plans and Trust Funds are both committing $100m to Starwood Opportunity Fund X. Earlier this month, the Teachers’ Retirement System of the State of Illinois and Illinois Municipal Retirement Fund, respectively, committed $150m and $40m.

According to the Connecticut document, the Asian sovereign wealth fund is committing $300m to the fund.

It also shows that the Starwood fund is targeting gross returns of 18-20% through investments in distressed debt, value-add assets and corporate transactions in the US and Europe.

The fund will target as much as 50% of its activity in Europe.

Connecticut noted Starwood’s “limited realized track record” in Europe but said this was “mitigated” by a number of factors: it had realised 20% of its European assets with returns of 30%; Starwood has identified more opportunities in Europe; its special servicer affiliate Hatfield Philips will provide “value knowledge about the European distressed real estate debt market”.

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