Los Angeles-based Mesa West Capital, the private U.S. real estate credit arm of Morgan Stanley Investment Management, has raised $1.37 billion for the firm’s latest closed-end, value-add debt fund, Fund V. The amount raised exceeds Mesa West’s original $1.0 billion target for the fund.

“We are extremely pleased with the continued support and trust from both our long-standing partners as well as new investors in Fund V,” said Mesa West Principal Jeff Friedman. “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 business over time.”

Fund V was established to originate, purchase and manage loans secured by value-add/transitional commercial real estate assets through the U.S., which has seen increased demand due to regulatory changes from the Global Financial Crisis and the current volatility and dislocation in the capital and property markets.