Heitman closed its latest fund with $2B in capital commitments, the largest raise in the Chicago-based real estate investment firm's history.
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Heitman Value Partners Fund VI attracted a total of $2.6B, including an additional $620M in co-investment capital. Including debt, it is expected to support $6.5B worth of transactions, Heitman announced Monday.
The fund is targeting an overall return of 12% to 14% after fees and is looking to buy alternative assets like medical office, student housing, senior housing and self-storage, complemented by traditional growth sectors like multifamily and industrial.
Heitman is one of several private money managers looking to pick off discounted deals in alternative assets as the commercial real estate sector reprices to fit today’s interest rates.
The $2B raised was the fund’s hard cap and ahead of Heitman’s $1.75B target. More than 30 investors across seven countries made commitments, the firm said.
“We view this phase of the cycle as an attractive entry point,” CEO Maury Tognarelli said in a statement. “Strategies underpinned by secular trends that generate returns from a combination of income and value creation opportunities continue to remain compelling.”
Heitman's Fund VI has already deployed $847M, or roughly 42% of its committed capital, across 12 investments, a spokesperson for the company told Bisnow. Its investments include medical office, student housing, multifamily, cold storage, industrial outdoor storage, industrial and self-storage.
Heitman had $48B in assets under management at the end of September, including equity, debt and securities. The firm, founded in 1966, has its European headquarters in London and 11 global offices.
Heitman has raised five North American value-add funds since 2004 representing $4.5B in equity commitments across 103 investments. Fund VI will also focus on assets in the region, the spokesperson said.
It most recently announced the off-market acquisition of a nine-asset residential portfolio covering 316 units across Fukuoka, Japan. In July, the firm disclosed the acquisition of a 150K SF self-storage facility in Dublin with 2,500 units.
Boston-based Bain Capital also announced the close of a more than $3B fund targeting alternative assets this month, with 30% of that capital already deployed, including to purchase a 375-slip boat storage facility in Maryland.
Kayne Anderson has leveraged demand for alternative assets, including senior and student housing, to raise $2.5B for its seventh real estate fund, which is still open. Clarion Partners also broke into senior housing for the first time in 2025 and plans to spend $1B on the sector annually.
The real estate secondaries market also continues to attract new capital after posting a record 163 transitions in 2024.
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