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A local private equity firm raised $865 million for its latest fund, which will pursue investments in underperforming properties.

CrossHarbor Capital Partners will seek investments in all property types, including illiquid and distressed assets, for its CrossHarbor Institutional Partners 2021 fund.

The closed-end fund will focus on high-yield debt and equity investments across the U.S.

The fund is Boston-based CrossHarbor’s 10th vehicle and already has deployed $55 million in co-investment capital, the company announced this week.

CrossHarbor launched fundraising for the CIP 2021 in February 2021 and exceeded its $850 million target through investments by pension plans, endowments, foundations and other institutional investors.

“We believe the current market will create significant opportunities for our investors, with CrossHarbor well positioned to execute our strategy,” CrossHarbor Capital Partners Managing Partner William Kremer said in a statement.

The firm has $8.7 billion in assets under management.