Berkshire Group is seeking to raise $1.5bn (€1.21bn) for its latest fund targeting securitised multifamily debt in the US and has attracted a $60m commitment from the Texas Permanent School Fund (PSF).
Berkshire Multifamily Debt Fund III, filed with the Securities Exchange Commission in November last year, invests predominantly in debt through Freddie Mac’s Multifamily Capital Markets Execution (CME) programme.
The vehicle follows on from its predecessor which raised $1.25bn in 2018.
According to sources that track fundraising by debt fund managers, Berkshire Group is aiming to raise $1.5bn. The company declined a request for comment.
When the close of Berkshire Multifamily Debt Fund II was announced in 2018, Berkshire said it would invest through the government-sponsored Freddie Mac CME programme, “focusing on current income and credit quality”.
The company also said at the time it would “invest opportunistically in other debt assets secured by multifamily properties, such as mezzanine debt, B-notes, and discounted notes”.
Texas PSF confirmed to IPE Real Assets that it is investing $60m in the latest fund and is also making a $40m commitment to another multifamily debt fund, Berkshire Bridge Loan Investors II.
The capital-raising target for this fund is unknown, but Berkshire Bridge Loan I secured $452m in 2018, according to industry sources.