KKR & Co. LP is looking to raise $1.5 billion for KKR Real Estate Partners Americas II, its second US real estate opportunity fund, IPE Real Estate reported.
The fund has attracted $427 million at its initial close and is targeting gross returns within a range of 16% to 20%.
The fund will focus on U.S. real estate equity and debt, special situations and companies that possess substantial real estate holdings, according to the report.
KKR will co-invest $200 million in the fund and use 70% leverage.
KKR declined to comment on the matter, the publication reported.