South Carolina Retirement System has approved a $150m (€133m) commitment to the Greystar Equity Partners IX, a fund targeting US multifamily investments.

According to a pension fund board meeting document, the commitment will cover around 15% of the $1bn of capital Greystar hopes to raise.

South Carolina made the commitment as part of its new 7% targeted allocation for real estate approved earlier this year. Its previous allocation was 5%.

Prior to this commitment, South Carolina had 21% of its portfolio invested in apartments, compared to the ODCE Index which allocates 25% to apartments.

After the commitment to Greystar, the pension fund now has 27% of its portfolio in the sector.

Greystar, which declined to comment, will be co-investing $25m in Partners IX, according to the board meeting document.

The fund, with a 60% maximum leverage, will be targeting 15% to 17% gross internal rates of return.

Greystar will be seeking properties that are mismanaged or undercapitalised where it can buy at significant discounts to replacement cost.

Greystar is looking to acquire 30 to 40 assets for the new fund.