Angelo Gordon has set a $3.25bn (€3.1bn) fundraising target and a $3.75bn hard cap for its latest value-add real estate fund, according to an investor.

Mississippi Public Employees Retirement System disclosed in a meeting document that it had approved a $75m commitment to the AG Realty Value Fund XI fund.

Angelo Gordon has raised over $2.75bn in May 2019 at the final close of the previous fund in the series, exceeding its $2.5bn target.

The fund’s latest capital raise will include a US-only sleeve designed for investors that only seek investments in the US. The fund is expected to invest up to 20% of its capital in Europe and/or Asia.

Fund XI’s portfolio is expected to comprise up to 30% offices, between 25% and 35% of multifamily, 15% to 30% industrial, and 5% to 15% of retail and lodging real estate.

The fund targets a net internal rate of return of 12% to 13% net and 16% to 17% gross.

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