Madison Realty Capital has raised $695m (鈧�610m) for its third debt fund.
Both new and existing investors backed the company鈥檚 Debt Fund III, according to Adam Tantleff, managing principal.
The fund, which focuses on US offices and apartments, is aiming for a 16% return.
Public pension funds, corporate pension funds, foundations and endowments, family offices, and wealth managers backed the vehicle.
The Oregon Public Employees Retirement Fund invested $150m in the fund, its first commitment to Madison and the first time it has backed a debt fund.
The New York State Teachers鈥� Retirement System has also committed to the fund, with a $40m investment .
Madison will originate and buy senior-secured loans, bridge loans, mezzanine debt and preferred equity investments.
Loans will typically run from 1-3 years.
Tantleff said: 鈥淲e continue to find and exploit market opportunities that exist in the under-served middle markets across asset classes.鈥�
The company鈥檚 previous debt vehicle, Sullivan Debt Fund, was launched in 2012 and raised $350.4m of equity commitments.
