Blackstone has raised capital for a new global real estate fund that has an equity target of $25B and will look to buy assets in sectors that have the potential to beat the high rates of inflation.

The giant investment manager has raised money from the Teachers’ Retirement System of Louisiana, the Arkansas Teacher Retirement System and the Oklahoma Teachers’ Retirement System, IPE Real Assets reported.

Blackstone Real Estate Partners X has an equity target of $25B and will invest primarily in North America, although some of its equity will flow into Europe and Asia.

The fund would be the largest real estate vehicle in history if Blackstone hits its fundraising target. The company raised $20.5B of equity for its last global fund in September 2019.

That fund has made $21B worth of investments, including debt. It has sold $6B of those assets and is on track to make a 1.9% multiple on invested capital from its investments and a 47% net internal rate of return. Blackstone has $298B of real estate assets under management.

After the company’s first-quarter results in April, Chief Operating Officer Jon Gray said that high inflation, rising interest rates and the lagging economy make the investment environment highly unpredictable.

He said that as far as real estate is concerned, that meant continuing to invest in sectors like logistics, life sciences and rental housing — especially where leases are short. Those sectors have strong demand, meaning rents can rise, and the short leases allow owners to capture rental inflation.