Covenant Capital Group is planning a $400m (€364.3m) fundraise for its tenth apartment fund, according to people familiar with the matter.
With leverage, the Covenant Apartment Fund X fund is expected to have a $1.1bn purchasing power to buy value-add apartments in the US.
The predecessor Fund IX fund raised $395m at final close in December 2018.
Fund X is targeting 16% to 18% net internal rate of returns.
Covenant Capital is known for buying properties in the states of Alabama, Indiana, Kentucky, South Carolina and Tennessee.