Real estate investment and services firm Kennedy Wilson has raised USD125m of equity for KW Property Fund III from a group of investors including university endowments, public funds, foundations, Taft Hartleys and family offices.

The company supplements the fund with more than USD1bn of equity from a select group of co-investors that may invest alongside the fund, giving the company over USD3.5bn of buying power.

"Despite a challenging economic environment, our fundraising efforts for KW Property Fund III were successful," says Donald J. Herrema, executive vice chairman of Kennedy Wilson. "We are very pleased with the quality and diversity of investors that are participating with us and believe that the fund is a great opportunity for them and for Kennedy Wilson to acquire strategic equity and debt investments."

KW Property Fund III targets equity and debt investments on the West Coast of the US and in Hawaii that have the following characteristics: financially distressed ownership situations; under-managed or under-leased assets; and repositioning opportunities.