Life Capital has closed its flagship capital raise of USD 250 million for a closed-end core-plus property fund.
The New York-based fund manager reached its second and final close for Life Capital Real Estate Partners earlier this month, according to sources close to the fund.
Two large Korean pension funds confirmed to IPE Real Assets that they joined the capital raise by committing a combined USD 50 million.
The fund is targeting net returns of 9 percent to 11 percent, with a focus on gateway markets including New York City, Dallas, and Houston.
The fund will invest in existing assets across the office and industrial sectors.
LSM Management, acting as the fund's exclusive placement agent, secured international institutional investors for the first and second rounds. Marc Nasir, formerly of Blackstone and head of Life Capital's investment desk, has previously mentioned plans for a second fund that will target U.S. investors for the European property market in 2018.
A commitment recommended by real estate consultant The Townsend Group represents the first time a Korean pension fund has invested in the United States with Life Capital.