Torchlight Investors has raised $1.3bn (€1.2bn) for its latest real estate debt fund and is expected to reach its fundraising target later this month, according to sources.
The Torchlight Debt Opportunity Fund VI fund is expected to receive more than $1.5bn at final close at the end of the month. Its predecessor raised $1.36bn.
The Teachers’ Retirement System of Louisiana said in a board meeting document that it had made a $75m commitment and the fund had already made $659.6m of investments.
The fund will take debt positions on value-add real estate transactions, including senior loans, mezzanine financing, commercial mortgage-backed securities and preferred equity.
It will target net returns of between 12% and 15% and an annualised distribution rate of at least 6% once fully invested.
Torchlight declined a request for comment.