Rockwood Capital is seeking $1.25bn (€1.06bn) for its latest US real estate fund, according to an investor.
Nebraska Investment Council has committed $40m to Rockwood Capital Real Estate Partners Fund XI.
The fund is expected to bigger than its predecessor, which raised $1.1bn in 2017.
Rockwood Capital, which is said to be co-investing $16m in the new fund, declined a request for comment.
The fund is targeting a net internal rate of return of between 12% and 14% with a 1.6x to 1.8x net profit multiple, according to the board meeting document.
It will focus on office and multifamily markets in Boston, New York City, Washington DC, Los Angeles, the San Francisco Bay Area and Seattle. Retail and hotel assets will be considered.
Nebraska Investment Council’s commitment will cover all of the capital it planned to invest in non-core real estate as part of its 2019 annual investment plan.