Bridge Investment Group Partners has held a final close on its second US opportunity fund, raising $595.5 million in equity and surpassing its hard cap of $500 million. The Salt Lake City-based investment firm saw a diverse group of global investors contribute to the fund, including endowments, foundations, public and private pension plans, fund of funds, corporate investors, family offices and high-net-worth individuals.
Real Estate Opportunity Capital Fund II, which launched in April 2012, is the second in a series of funds focused on opportunities in US value-added multifamily and commercial office properties. Dean Allara, chief operating officer and managing director of capital markets at Bridge, told PERE that the fund is focusing on acquiring assets in the West, Southwest and Southeast regions of the US.
“The incremental capital in the fund will allow for greater asset and geographic diversification, along with a strong liquidity position that provides a reputation of being a ‘sure closer’ in the market,” said chief executive officer Donaldson Hartman in a statement. “We are well ahead of our expectations in capital deployment and continue to find compelling risk-adjusted opportunities. We look forward to building upon the success of our predecessor real estate fund and providing exceptional returns to our investors worldwide.”
Bridge already has deployed $400 million of Fund II’s capital in assets that have “high current income and strong upside potential” and plans to deploy 75 percent or more of the total equity by the first half of next year. Fund II is investing in assets averaging between $20 million and $30 million, though Allara indicated that Bridge is considering properties outside of this price range if they are a good fit for the fund strategy. Through its operating platform, Bridge Property Management, the firm is able to make all enhancements and refurbishments to its investments in-house.
Bridge’s first vehicle, Real Estate Opportunity Fund I, closed on $125 million in 2010 and is fully invested. The firm, which has acquired more than 120 assets since opening its doors in 1991, has more than $1 billion in assets under management, consisting of approximately 23,000 apartment units and 2 million square feet of office space.