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Former Blackstone Exec’s New Firm Raises $1.25B, Beats $1B Target

Town Lane is reportedly interested in opportunities in hotels, multifamily buildings and warehouses in Sun Belt cities, the firm has previously stated.

New firm on the block Town Lane has raised $1.25B in its inaugural funding round, a quarter-billion dollars more than its initial target.

As of February, the firm, founded by longtime Blackstone executive Tyler Henritze, was on track to raise approximately $1B by the end of Q2 in its inaugural fundraise. It already had $750M in commitments at the time, but has now surpassed its initial target a month before the end of the quarter.

The Town Lane Real Estate Opportunities Fund I was oversubscribed and is now closed, according to a release. Town Lane’s inaugural backers include experienced institutional investors, including pension funds, charitable foundations, family offices and university endowments, the firm said in the announcement.

“Town Lane was formed to pursue high conviction, thematically oriented opportunities leveraging the team’s 20+ years of pattern recognition and to do so within a more aligned, relationship-centric model,” Henritze, who also serves as the fund’s managing partner, said in a statement.

Henritze didn't immediately respond to a request for comment from Bisnow. He co-founded the firm with his sister, Parker Morse, who spent more than 10 years at retail private equity firm Sycamore Partners.

Henritze previously stated his firm's interest in warehouses, hotels and multifamily buildings in Sun Belt cities. In the announcement of the fund's closing, Town Lane now bills itself as focused on opportunistic real estate investments throughout the country and has a “flexible mandate across commercial real estate sectors.”

Town Lane is looking at opportunities created by the high interest rate environment, which Henritze said in a statement has caused a “backdrop of ongoing distress.”

Henritze founded Town Lane after 19 years at Blackstone, where he oversaw blockbuster real estate deals that elevated the firm’s reputation to its position today.