Siguler Guff has raised $877m (€750m) for a distressed real estate fund, exceeding its initial $750m.

The New York private equity firm said it closed its Distressed Real Estate Opportunities Fund II.

DREOF I, a $630m fund, was launched in 2010 by the company, which runs multi-manager funds, direct investment funds and separate accounts.

It has around 500 institutional clients.

Drew Guff, managing director and founding partner, said the company expected to see “significant acceleration in the volume of distressed commercial real estate opportunities coming to market in Europe”.

As previously reported, Contra Costa County Employees Retirement Association (CCCERA) committed $80m to Fund II in 2013.

CCCERA at the time said Siguler Guff, which has since opened a London office, might potentially allocate a larger portion of the fund to Europe than it did in the previous fund.

Of the 22 investments made by Siguler Guff for its first fund, only two were placed into European funds.

Fund II aims to identify and exploit areas of market inefficiency and capital “starvation” and will consider investing in the US, Europe, Brazil, Russia, India and China – both through funds of funds and co-investments.