PCCP has raised $601m (€536m) for its seventh real estate equity fund.

The investment manager, which has $6.5bn of assets under mangement, is targeting the top 25 US markets for the PCCP Equity VII fund, according to placement agency Hodes Weill & Associates.

Last year, IPE Real Estate reported that the California State Teachers’ Retirement System and the Teacher Retirement System of Texas committed capital to the fund.

It was understood then that the targeted capital raise was $500m, with a $700m hard cap, according to industry sources familiar with the fund.

PCCP focuses on value-add and opportunistic real estate in the US, through both equity and debt investments.

Equity VII fund will provide equity for existing assets that need improving or for new developments.

The fund is targeting returns in the mid-teens and will invest in the US gateway markets of Los Angeles, San Francisco, New York City and Boston.