Residential specialist Waterton is seeking to raise up to $1bn (€841m) for its latest US apartment fund, according to sources familiar with the matter.
Orange County Employees Retirement System is one of the investors considering an investment in the fund, Waterton Residential Property Venture XIII.
The pension fund, which invested in Waterton’s previous fund in 2015, will seek approval for a $100m commitment at its board meeting on 29 November, according to its meeting agenda. Orange County declined to comment further.
Waterton is planning to raise between $750m and $800m, according to sources, but has a hard cap of $1bn. The company will co-invest approximately 4% of commitments.
Waterton’s previous fund raised $511m of equity in 2015.
The new fund will target net returns of 13% (15% gross) by investing in apartments that need improvements. It might consider acquiring debt backed by apartment complexes.
Waterton has a strong presence in the residential markets of West Miami, Chicago, Atlanta, Charlotte, Houston, Portland, Los Angeles and Southern California.