Alaska Permanent Fund Corporation (APFC) is investing $300m (€285m) in the Fairfield Affordable Housing Preservation Fund, according to a board meeting document.
Fairfield declined to comment, but in October the company announced it had launched the fund and had raised $600m in commitments by October.
Investors in the fund include US and global pension funds and foundations.
The fund has already made investments and has a net asset value of $200m, according to sources familiar with the fund.
The strategy is to acquire apartments with low-income housing tax credits with long-term rent and income regulatory agreements in place.
The fund plans to invest across the US, inluding Washington DC and markets in Florida, Texas and California.
Fairfield has been active in affordable housing for 20 years, but the new fund is the first open to third-party investors.
The fund manager has $11bn in assets under management, of which $3.3bn consists of apartments with low-income tax credits.
The new fund is open-ended and the underlying assets are projected to be held for 10 to 20 years.
Target net returns for the fund is 9% to 10%, and the maximum amount of leveraged planned for the fund is 65%.
