Mesa West Capital, a private U.S. real estate credit arm of Morgan Stanley Investment Management, has raised approximately $1.37 billion for Mesa West Real Estate Income Fund V LP, exceeding Mesa West’s original $1 billion fundraising target for the fund.

The fund was established to originate, purchase and manage loans secured by value-add and transitional commercial real estate assets throughout the U.S. It looks to create a portfolio of investments to produce current income and risk-adjusted returns. Fund V is the most recent and largest in Mesa West’s closed-end value-add series, which was established in 2005, and is the first successor vehicle raised by Mesa West since joining Morgan Stanley Investment Management.

“In today’s environment, sophisticated investors are increasing their allocations to real estate credit with managers who have been tested through market cycles,” comments Jeff Friedman, principal of Mesa West. “Mesa West’s successful track record through multiple cycles, including through the global financial crisis, has been a differentiator for the platform in continuing to organically grow our business over time.”