Acore Capital has secured a $250m (€211.6m) commitment from Virginia Retirement System for its latest US real estate debt fund.
Virginia Retirement System disclosed in a board meeting summary that it had committed the capital to the Acore Credit Partners III fund.
According to sources familiar with the fund, Acore Capital is currently in the pre-marketing phase for its third flagship vehicle, which has a target capital raise of $1.75bn to $2bn.
IPE Real Assets understands that the fund is targeting net returns of 10% to 12% and cash-on-cash returns of 8% to 10%, though a formal launch and initial seed capital closing have not yet taken place.
Partners III’s primary strategy focuses on issuing floating-rate loans for commercial real estate with value-add business plans, as well as the origination or purchase of subordinate debt. Target investments will primarily include the housing, industrial and hotel sectors.
Individual loan sizes are expected to range from $50m to $300m, with an average deal size of $75m. The fund will provide financing at loan-to-value ratios typically between 50% and 75%.
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