Bain Capital Real Estate has closed a $3bn fund, nearly double its initial target, as investors bet that U.S. property deals will provide high yields and inflation protection, Bloomberg reported.

Private equity firms have been hoarding dry powder to buy real estate, which offers an inflation hedge because rents can adjust to offset rising purchase prices, interest rates and other costs.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

“Despite today’s current prices,” Dan Cummings, head of the Bain property unit said, “we continue to source compelling investments with attractive yields, prospects for future income growth and inflation protection.

Source: The Edge Markets

Can’t stop reading? Read more