FPA Multifamily’s latest US core-plus fund has received $225m (€207.2m) worth of commitments from the New Mexico State Investment Council (SIC) and the Texas County & District Retirement System.

New Mexico SIC has backed the San-Francisco-based housing specialist with a $100m commitment to the FPA Core Plus Fund V fund and Texas County has invested $125m, the investors said.

Core Plus Fund V, which is seeking to raise $750m, has a $1bn hard-cap target. The fund raised $344.5m at first close in December last year.

The manager raised $703m for the previous fund in 2018.

Core Plus Fund V fund will target US apartment complexes that have minor physical or operational issues.

The targeted returns for the fund are a 9% to 11% net leveraged internal rate of returns.

The commitment by New Mexico SIC is part of the sovereign wealth fund’s plan this year to over-allocate to apartment assets.

In line with this strategy, New Mexico SIC approved a $100m commitment to the Cortland Partners Growth and Income Fund last month and is expected to invest in another apartment fund this year.

New Mexico SIC has also made a $100m commitment to the Carlyle Property Investors fund to help rebalance its equity portfolio and also because it had taken over the management of the Tax Stabilization Reserve.