Dune closes opportunity fund on $727m

The fund represents the new real estate platform from Goldman alums Daniel Neidich, Steve Mnuchin and Chip Seelig.

Dune Capital Management has closed its inaugural real estate opportunity fund on $727 million (€580 million). Investors include a “diverse base” of endowments, foundations and both public and private pension funds.

Dune was formed by Dan Neidich, Steve Mnuchin and Chip Seelig, all of whom spent 17 years together at Goldman Sachs. While there, Neidich founded the investment bank’s Whitehall Street Real Estate Funds, invested about $60 billion and presided over some of the most prominent transaction in the history of the private equity real estate asset class before he left in 2003.

Dune Real Estate Fund has made four investments so far, according to a statement from the company. The fund will be global in scope and will target investments in real estate related assets, portfolios, joint ventures and operating companies.

Last year, Dune broke ground on the $1.8-billion Cosmopolitan Resort & Casino, a two-tower complex including a casino, a hotel and condominiums on the Las Vegas Strip. The firm was also part of the KKR-led consortium that acquired GMAC Commercial Holding, a real estate financial services company, earlier this year.

Dune, which also has a hedge fund platform, manages $2.5 billion in capital. The firm has also been an active investor in Hollywood recently; earlier this year, Dune partnered with Soros Strategic Partners in the $900-million acquisition of the film library of DreamWorks.