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Fundamental Advisors closes fund on $993m

The New York-based firm’s third real assets vehicle will scout for opportunities in the municipal market, including housing, senior care and hospitality.

Fundamental Advisors, a New York-based alternative assets manager, has closed a $993 million fund focused on the distressed municipal market and public purpose assets including infrastructure.

Fundamental Partners III, launched in 2015, will invest in housing, senior care, alternative energy and hospitality along with infrastructure. Most existing investors committed to the new fund, while new limited partners included state and corporate pensions, foundations and financial institutions, according to the firm.

Investors in the third vehicle included the Kentucky Retirement Systems, which earmarked $100 million, and the Arizona Public Safety Personnel Retirement System, which committed $50 million to the fund and $30 million for co-investments, according to the pension systems’ websites.

The firm’s most recent publicly-disclosed real estate transaction was the September disposition of a 138-unit apartment building in Austin, Texas for an undisclosed price, according to data provider Real Capital Analytics.

“As private capital takes on an increasingly crucial role in developing, revitalizing and sustaining critical community assets, the differentiated approach that we pioneered over a decade ago is more vital than ever,” said Laurence Gottlieb, the firm’s chief executive. He went on to call the opportunities in the current market “increasingly compelling.”

Founded in 2007 and focusing on revitalizing distressed assets, Fundamental Advisors has committed around $1.7 billion in capital. Its infrastructure investments include utilities, renewables, toll roads and water treatment facilities. The firm’s previous fund, which closed in 2013, raised $450 million.