Kayne Anderson Capital Advisors has reached its fundraising target for its latest real estate fund, according to a person familiar with manager’s capital raising activities.

IPE Real Assets understands that Kayne Anderson Real Estate Partners V is now close to achieving its ‘hard cap’ of $1.8bn (€1.5bn).

The fund has received a $75m commitment from Texas Permanent School Fund (PSF), according to a board meeting report.

Texas PSF, which was advised by Courtland Partners, is investing in the fund for defensive purposes at what the pension fund deems to be a late stage in the real estate cycle, the report shows.

The closed-ended value-add fund will invest in niche sectors, allocating 90% of its capital to medical office buildings and senior housing, and 10% to student accommodation.

It plans to improve and reposition assets and seek development opportunities, generating income returns for investors before selling onto to core buyers.