Bridge Investment Group Partners has closed its latest value-add fund on $1.1 billion, the firm said Monday.
The Salt Lake City, Utah-based real estate investment manager launched Real Estate Opportunity Capital (ROC) Multifamily and Office Fund III with a $750 million target in December 2014.
About 75 percent of investors in the predecessor vehicle returned to Fund III, sources with knowledge of the fundraising process said. With its latest fund, the firm continues the same investment strategy of its earlier vehicles in the multifamily and office series, with a focus on Class B assets. The firm has deployed more than $450 million in equity from the third fund to 32 assets, according to Monday’s statement. Bridge is targeting a return in the mid-teens, PERE previously reported.
“We as a company have continued to find some significant opportunities in the marketplace with a focused strategy on understanding the ground-up collateral with a top-down view of the world,” Dean Allara, the firm’s vice chairman, told PERE.
ROC I, a 2009 fund that closed in 2010, collected $124 million in equity with a $16 million co-investment and ROC II, which launched in 2012 and closed in 2013, garnered $595.5 million, PERE previously reported.
Founded in 1991, Bridge launched its fund management business in 2009 as a real estate operator focused primarily on the multifamily sector and now manages $6.7 billion in assets. The latest fund’s investor base includes pensions, endowments, foundations, funds of funds managers, family offices and selected high net worth individuals.
In July 2015, the firm closed ROC Seniors Housing Fund Manager with $735 million of equity capital, far surpassing its initial $450 million target for the fund. That vehicle, launched in November 2013, is the real estate investment manager's first offering dedicated to the niche strategies of US senior housing and medical properties. PERE understands that the firm plans to launch the second fund in the fourth quarter.
This week, the firm also announced that it secured $362 million in equity commitments for its debt-focused subsidiary fund manager, ROC Debt Strategies Fund Manager. The commitments will go toward the firm’s current fund offerings, including ROC Debt Strategies Fund II, which was launched in May with a target of $500 million and a hard cap of $750 million. ROC Debt Strategies Fund Manager invests in Freddie Mac K-Series securities, floating rate loans, mezzanine loans and preferred equity on multifamily, office and senior housing.