Waterton is expected to raise between $1bn and $1.2bn (€1bn to €1.2bn) initially for its latest value-add US apartment fund.
According to San Diego City Employees’ Retirement System’s (SDCERS) meeting document, the Waterton Residential Property Venture XV fund, which seeks to raise $2bn in total, is expected to have its first close in December.
The pension fund disclosed in the meeting document that it is planning to approve a $25m commitment to Venture XV.
Earlier this year, Waterton raised $1.5bn for Waterton Residential Property Venture XIV, the predecessor fund.
Waterton is expected to make a 1% or $20m co-investment into the latest fund.
The fund targets a net internal rate of return of 12% to 13% with a leverage of up to 65%.
Venture XV is expected to buy undercapitalised, underperforming assets from stalled developments, foreclosures or owners in need of liquidity.
Waterton declined a request for comment.
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