Related Cos Raises $1B for New Fix-and-Flip Fund

Ryan Boysen

Related Cos—the developer behind the largest mixed-use in US history—just raised $1B for its second "opportunistic" real estate fund, Related Real Estate Fund II, beating its $850M target by a healthy margin.

In the years following the crash, Related Cos—with assets valued at over $20B—took advantage of the surplus of distressed properties, fixing them up and selling them at a premium, the New York Times reports.

The first fund raised $825M in 2012, creating assets like Chicago’s 111 West Wacker and New York's One Madison Park.

Investors are flocking to the new fund already. Endowments, family offices and sovereign wealth funds have all signed on for a piece of the action.

Justin M. Metz, former global head of real estate alternatives at Goldman Sachs, who was hired to run the first fund, says he plans to adopt a similar strategy. [NYT]

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