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Boston-based Rockpoint Group’s most recent opportunistic fund has exceeded expectations to the tune of $800M.
Rockpoint Real Estate Fund VI, which the investment management firm targeted for $3B, generated $3.8B in commitments, outstripping its benchmark by more than 25%. Rockpoint also raised $2B in commitments for its latest lower-risk fund, Rockpoint Growth and Income Real Estate Fund III, the company announced Tuesday.
“In the wake of the challenges our economy has faced in recent months, we believe there will be significant opportunities across both Fund VI and RGI III, and we are excited to pursue what we expect will be attractive real estate investments in our target U.S. markets,” co-founders Bill Walton and Keith Gelb said in a joint statement.
The $3.8B mark Rockpoint raised for the opportunistic fund surpassed by $500M the amount raised for Fund IV’s predecessor. Fund VI targets the office, hotel and residential sectors in the U.S. and had already invested $534M in four deals, IPE Real Assets reported in April.
Investors have differing viewpoints on when distressed opportunities will arise. While most of the big players with cash on hand are biding their time until they can pounce on distressed opportunities, Starwood Capital agreed to inject as much as $325M into a mortgage real estate investment trust this month, marking one of the first big distressed real estate deals since the onset of the coronavirus pandemic.
Investors in the two funds were diverse, according to the release, including pension funds, sovereign wealth funds, endowments and more from across the world.
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