Madison Realty Capital is knocking on the door for its $1 billion target for its fourth real estate credit fund, according to Securities and Exchange Commission filings.

According to PERE‘s sister publication Private Debt Investor, the New York-based firm has so far raised $935.25 million in equity for Madison Realty Capital Debt Fund IV through multiple interim closes. The fund held a first close in June 2017.

The vehicle will target an 11-14 percent net internal rate of return and a 1.4x-1.7x multiple on invested capital, according to documents from the Texas Municipal Retirement System. The US public pension has committed $100 million to the fund, according to PDI data.

The firm originates senior secured and mezzanine debt as well as preferred equity investments, which are used for construction, acquisition and refinancing of commercial real estate, according to the company’s website. Madison Realty also acquires non-performing loans and preferred equity positions.

Madison Realty Capital Debt Fund IV, once fully closed, will be significantly bigger than its predecessor fund that raised $695 million in May 2016. Fund III received $150 million in commitment from the Oregon State Treasury and $50 million from the New Mexico Public Employees’ Retirement Association.

Real estate debt fundraising had been a bright spot in real estate fundraising in recent years, according to PERE data, but the total capital raised plummeted in 2018, falling from $39.08 billion in 2017 to $20.39 billion.