The Texas Permanent School Fund has invested $100m (€93.2m) in opportunistic real estate, making $50m commitments to the Rockpoint Group’s Real Estate Fund V and PAG’s Asia Special Situations Fund II.

Rockpoint, aiming for a $2.5bn raise for Fund V, will contribute 1.5% to the fund.

The fund’s targeted gross IRR is 18-20%, with an equity multiple of at least 1.6 and 60% leverage.

Most of the capital will be invested in US gateway cities, with the UK and France also targeted.

Fund V will buy assets showing distress in the office, apartment, retail and hotel sectors.

Meanwhile, PAG Special Situations Management II, which declined to comment, is still raising capital for its fund, which will invest in debt and equity transactions.

PAG, which has operations across Asia, will invest in Hong Kong, Shanghai, Tokyo, Beijing, Singapore and Seoul.

The company’s real estate business includes Tokyo-based Secured Capital Investment Management, which has more than $9bn of real estate assets under management.