Alterra Property Group, LLC and Park Madison Partners held the final close of Alterra IOS Venture III, LP at $925 million, surpassing the $750 million target and eclipsing the $850 million hard cap.

The close coincides with the deployment of Philadelphia-based Alterra’s $524 million predecessor fund, which also exceeded its original target and hit its hard cap.

The fund is a continuation of Alterra’s IOS strategy, which launched in 2016. The fund is expected to focus on acquisitions on infill properties across the U.S. and Canada.

“Venture III is the largest IOS [Industrial Outside Storage] dedicated pool of discretionary capital raised to date and will help deepen our competitive advantage as we look to further institutionalize the IOS sector,” said Matthew Pfeiffer, managing partner, CIO of Alterra.

“The institutional investor support for Alterra and Venture III has been an outlier to the larger market,” added Park Madison Partners’ Rob Kohn. “The speed to final close was also impressive. The entire investor allocation was more or less spoken for within eight months of launch, versus the current industry average of 24 months.”

Alterra is one of the largest institutional owners of IOS in the U.S. with approximately $3 billion in assets under management.