The Texas County & District Retirement System has committed $75m (€66.3m) to an opportunistic real estate fund managed by GEM Realty Capital.

The US pension fund said it was backing the manager’s Fund VI, a US-focused opportunistic fund.

The fund will seek existing assets with a value-add component, including improving assets through leasing and renovation.

Part of the strategy will include investing capital in new projects.

Texas County & District considers the commitment as a follow-on investment, having backed the manager’s fifth fund with $50m in 2013.

The investor has also made a €50m allocation to a PW Real Assets fund – the Real Estate Fund III, a €1.5bn fund targeting assets in the UK, Germany, France and Spain.

Targeted returns are around 15% net IRR, with a high percentage of the fund in direct assets and corporate investments.

A $50m allocation has also been made to Carmel Partners’ US apartment-focused Institutional Fund VI, which makes equity and debt investments in existing properties in need of renovation.

Carmel favours supply-constrained and high-barrier-to-entry locations, targeting California, Colorado, Connecticut, Hawaii, New York, Washington State and Washington DC.

Texas County & District has a 5% targeted allocation for real estate, part of the fund’s 11% targeted allocation for real assets.

Other investment classes for real assets are 3% for master limited partnerships and 3% for REITs.