Cerberus Capital Management has so far raised $1.9bn (€1.6bn) for its latest opportunist real estate fund, according to an investor.

The Orange County Employees’ Retirement System (OCERS) said in a meeting document that it has approved a $75m commitment to Cerberus Institutional Real Estate Partners V, a distress credit-oriented fund.

Cerberus is planning a $2bn fundraise with a $2.35bn hard cap target for Real Estate Partners V. The fund’s leverage is expected to be in the range of 60% to 75% and plans to invest in a mixture of commercial and residential real estate with an expected net internal rate of returns of 13% to 15%.

Half of the fund’s assets is expected to be in Europe with the US accounting for 40% of the assets. The remaining is expected to be made up of assets in Brazil, China and other Asian markets.

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