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”.
To read the digital edition of the latest IPE Real Assets magazine click here.