Oak Street Real Estate Capital has concluded capital raising for its latest real estate fund, securing $1.25bn (€1.1bn) from investors.
Fundraising for Oak Street Real Estate Capital Fund IV exceeded the fund manager’s original $750m target and $1bn ‘hard cap’, according to sources.
Oak Street, which did not comment, specialises in ‘net-lease’ real estate investments.
The amount of capital raised suggests a growing appetite among US pension plans for net-lease strategies, which invariably involve single-tenant assets with long-term, inflation-linked leases.
A number of pension funds have committed to the fund, including Pennsylvania State Employees Retirement System, which had never invested with Oak Street Capital before.
Other investors include Teachers Retirement System of the State of Illinois and the Illinois Municipal Retirement Fund.
Oak Street Capital has yet to make any investments for the fund, although it expects to do so before the end of the year.