Ares Management Corporation has raised $1.04bn (€916.1m) capital for its latest US value-added real estate fund.

In April last year, IPE Real Assets reported that the manager was planning a billion-dollar capital raise for Ares US Real Estate Fund IX, which primarily targets US multifamily, industrial, and office properties.

Ares said the amount raised for Fund XI at close, exceeded the $825m raised for Ares US Real Estate Fund VIII in December 2014.

Fund IX received strong support from long standing existing investors as well as from new entrants, it said.

Investors backing Fund XI include pension funds, insurance companies, sovereign wealth funds, endowments, financial institutions and an asset manager, Ares said.

As previously reported, Pennsylvania Public School Employees’ Retirement System and the Texas Permanent School Fund invested into Fund IX.

Ares said the fund is around 50% committed with 12 investments across a diverse portfolio of properties representing more than 4,300 multifamily units and 15.7m square feet of industrial and office space.

Steven Wolf, a partner and CIO for US equity at Ares Real Estate, said: “It is very gratifying to receive the strong support from our long-term investors and to attract many new investors to our expanding real estate platform.

“This increased successor fund underscores the cycle-tested and consistently strong performance of the Ares Real Estate Group’s strategies.”

Howard Huang, a partner at Ares Real Estate, said: “We are excited about the composition of the fund’s portfolio, with 50% of the capital invested or committed and an excellent pipeline of compelling new investment opportunities.

“We remain committed to deploying our investors’ capital in a disciplined manner as we leverage the advantages of the Ares platform to find off-market value opportunities across our national footprint in the US.”