Global asset manager Brookfield Asset Management, with $750 billion in assets, including $246 billion in real estate, has closed its flagship real estate fund, Brookfield Strategic Real Estate Partners IV, hitting its target of $17bn.

Fund IV is the largest real estate fund to close this year. TPG’s Real Estate Partners IV was previously the largest fund, closing at $6.8bn.

The fundraise for the Toronto-based firm highlights the appeal of real estate and other hard assets during a volatile market environment. “Private real assets have proven to be a safe haven, further enhancing their appeal to investors,” said chief executive officer Bruce Flatt.

“Real estate is almost a tale of two cities. It has always been, but I think in this environment, the gap has widened between premier everything and poor-quality things,” added Flatt.

Brookfield launched the fund in April 2021 and is on track to have its largest fundraising year ever, with inflows of $33 billion since the end of last quarter.

“We will have one of the largest discretionary pools of alternative assets globally,” said Flatt in his quarterly letter to shareholders, referring to $125 billion of deployable capital.

“The corporation will not face any restrictions on how we use this capital, and our sole focus will be on allocating capital among our operating businesses and new business initiatives while targeting a 15% plus total return for our shareholders over the long term.”