PGIM Real Estate has so far raised 35% of a £1bn (€1.1m) fundraising target set for its latest European debt vehicle, according to one investor.

Pennsylvania Public School Employees’ Retirement System (PSERS) said in a meeting document that it has approved a $125m commitment to the PGIM Real Estate Capital (PRECap) VII, a fund which has so far raised £350m.

PGIM raised more than £1bn for the predecessor fund in April 2017. 

The fund manager is expected to make a co-investment into the fund of up to £75m.

According to Pennsylvania PSERS, the fund is expected to close in the first quarter of next year and will invest in junior debt and preferred equity transactions secured by core real estate.

PGIM did not respond to a request for comment.

Pennsylvania PSERS has also approved a $400m commitment to the ISQ Global Infrastructure Fund III, a fund planning to raise $12bn at its final close which is expected to be in early 2022.

The fund’s manager I Squared Capital Advisors will be issuing a co-investment into the fund of at least 2% of total commitments.

The fund will target energy, transportation, utilities, midstream and social infrastructure assets in North America, Europe, Asia and Latin America.

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