Berkshire Group has so far raised $2.17bn (€1.8bn) for two of its residential debt funds, according to an investor.
New Mexico State Investment Council (SIC) said in a meeting document that it has issued a $60m commitment to the Berkshire Multifamily Debt Fund III which has so far raised $1.2bn and has put $40m into the Berkshire Bridge Loan Investors II fund which has $970.3m commitments.
Debt Fund III seeks to raise $1.5bn and has a $1.85bn hard cap. Loan Investors II has set a $1bn target and a $1.44bn hard cap.
Debt Fund III invests predominantly in debt through Freddie Mac’s Multifamily Capital Markets Execution programme. The fund targets gross internal rate of returns of 12% to 13% and net returns of 10% to 11%. The vehicle follows on from its predecessor which raised $1.25bn in 2018.
The Loan Investors II fund focuses on providing loans on US multifamily assets. Most of the debt it will be providing are short-duration first mortgage loans backed by high-quality sponsors.
New Mexico SIC said Berkshire has already placed around 50% of the capital raise for the Loan Investors II fund into transactions, adding that “the performance of these asset has been above target”.
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