AEW Capital Management expects to have a $750m (€712m) first close for its latest opportunistic US real estate fund at the end of this month, according to an AEW to make $750m first close for opportunistic US real estate fund document.
The Mississippi Public Employees Retirement System (PERS) disclosed in a investors meeting document that it has approved a $50m commitment to AEW Partners X, a fund seeking to raise $2bn (€1.9bn).
According to Callan, the pension fund’s investment consultant, the AEW Partners X fund is also expected to have a final close at the end of this year or in early 2024.
Partners X has a $2.5bn hard cap target. As previously reported, the New Mexico State Investment Council approved a $100m commitment to the fund.
The latest fund targets a net internal rate of return of 15% compared with a return of 14% for its predecessor.
AEW has made the modest target return increase to mitigate risk for investors in the fund, according to Callan. The returns have increased due to the recent uptick in interest rates in the US.
The commitment by Mississippi PERS will represent 50% of its $100m placing plan for value-add real estate for 2023.
To read the latest edition of the latest IPE Real Assets magazine click here.
