Nebraska Investment Council has committed $56m (€45.5m) to Oaktree Real Estate Opportunities Fund VIII and $40m to the Kayne Anderson Real Estate Partners VI.
According to a Nebraska board meeting document, the fund had invested $540m by the end of September. This included a $196m investment in a $431m acquisition of bonds held by a mortgage real esate investment trust.
Oaktree is targeting net returns of 16% to 17%.
Kayne Anderson is looking to raise $2bn for Partners VI which is focusing on medical offices, and senior and student housing.
It will target gross returns of 18-20% by investing in under-managed and under-capitalised assets that can be improved, using up to 65% financial leverage.