Massachusetts Pension Reserves Investment Management Board (Mass PRIM) has approved a $150m (€125.1m) commitment to Berkshire’s third US residential debt fund.

The $81.62bn pension fund said in a meeting document that it is investing the capital into the Berkshire Multifamily Debt Fund III fund as part of Mass PRIM’s credit opportunity asset class investment strategy.

Mass PRIM previously issued a $54.5m commitment to Debt Fund II, the predecessor fund which raised $1.25bn in 2018.

The pension fund said part of the reason for its latest investment is due to the fund’s attractive risk-adjusted returns.

As previously reported, Debt Fund III seeks to raise $1.5bn and has a $1.85bn 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%. 

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