R
aith Capital Partners is seeking to raise $700m (€616.7m) for its latest US value-add real estate fund, according to an investor. The Rhode Island Employees Retirement System has committed $30.9m to Raith Real Estate Fund IV, which is expected to close in the current quarter.

    The fund will issue a co-investment amounting to 1% of its total capital. In comparison, the previous fund in the series, Fund III, raised $446m and reached $540m with the addition of co-investment capital.

    Fund IV targets a net internal rate of return of 12-14%, with 30-40% coming from current income and 60-70% from appreciation. The fund will use leverage of up to 70% loan-to-value, aiming for a three to five year holding period.

    The fund will focus on recapitalization and refinancing deals across all sectors, including distressed loans and end-of-the-fund-life sales. It will also consider investments in essential retail, industrial outdoor storage, data centre and self-storage properties, mainly targeting the industrial and residential sectors.