Pennsylvania Public School Employees’ Retirement System has backed Blackstone’s Real Estate Partners VIII fund with a $300m (€283m) commitment.

The investment by the US pension fund, according to a document, represents 2.3% of Blackstone’s $13bn total capital raise for the fund, itself the largest total raise for a commingled fund in the US.

Pennsylvania Public School said Partners VIII will invest globally and refurbish existing assets to sell on to core buyers.

Up to 40% of the fund’s capital will be deployed outside the US, with the aim of creating a geographically diverse portfolio. 

The fund has a minimum five-year investment period.

Significant capital constraints and concerns about slowing growth in China could provide opportunities for the fund, which has an 85% leverage cap, according to the pension fund.

Blackstone has historically used less leverage, with a 34.1% loan-to-value ratio for its Partners VI fund and 56.6% for Partners VII.

Public to private deals and mispriced sector investments will be pursued by the fund.

Pennsylvania Public School has invested $1.1bn with Blackstone since 2006.

The pension fund has made commitments of $200m to Blackstone’s Real Estate Partners V fund, $400m to Real Estate Partners VI and $300m to Real Estate Partners VII. It has also invested €200m in Real Estate Partners Europe III and $100m in Real Estate Partners Europe IV and $100m in BREDS II.