ACORE Capital has closed its second opportunistic real estate credit fund at $1.1bn (£820m), exceeding its original $1bn fundraising target.

The US commercial real estate investment manager said ACORE Opportunistic Credit II (AOC II) attracted commitments from a range of institutional investors and closed at more than four times the size of its predecessor fund. The vehicle has already committed $400m across 14 investments.

ACORE launched its opportunistic credit strategy in 2020, seeking higher-yielding investment opportunities across the commercial real estate market.

The firm said current market dislocation and discounted property valuations are creating opportunities for credit investors to finance business plans while occupying a more senior position in the capital structure.

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“Opportunistic real estate credit continues to offer compelling risk-adjusted return potential, driven by a significant basis re-set across many asset classes that provides an attractive opportunity to finance business plans that can take advantage of today’s discounted valuations,” said Matthew Drummond, senior managing director and head of high yield strategies at ACORE Capital.

Warren de Haan, chief executive and co-founder of ACORE Capital, said the fundraising reflected investor appetite for opportunistic real estate credit amid significant market dislocation.

“For more than a decade, we have built our business around the ability to navigate market cycles, identify where capital is most needed and deploy it with discipline,” he said.

Since being founded in 2015, ACORE has committed $1.34bn to opportunistic credit investments.

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