New York City-based Madison Realty Capital has raised $1.13bn (€1.1bn) for its fourth real estate debt fund.

Madison Realty Capital Debt Fund IV, which set out to raise $1bn, received capital commitments from investors in the US, Europe, Middle East and Asia, including public and corporate pension funds, the fund manager said. Its predecessor raised $695m.

As previously reported, Texas Permanent School Fund and Texas Municipal Retirement System each made $100m commitments to Fund IV.

It is Madison Capital’s largest fund to date and Adam Tantleff, managing principal of the real estate debt-focused private equity firm, said it provides more than $4.5bn of “capacity to address the needs of our clients”.

He said: “We are especially grateful to our investors, both new and old, domestic and foreign, for their support.”

The fund is focused on assets in the tri-state area of New York City.

It is aiming for net returns of 11% to 14% by originating and acquiring loans, mezzanine debt and preferred equity interests.