South Carolina-based manager Greystar Real Estate Partners has closed Greystar Equity Partners XI with $1.9 billion in capital commitments, PERE can reveal.
The fund, which was launched in May 2022, is the third-largest private real estate vehicle globally to reach a final close so far this year, according to PERE data, and the largest sector-specific fundraise in the period.
The residential specialist firm employs a value-add strategy with GEP XI to acquire and develop rental housing assets across the US. Since the launch of the first fund in the firm’s flagship series in 2011, Greystar has raised more than $6.5 billion for the series.
PERE data shows GEP XI is the sixth-largest multifamily-focused fund closed globally since 2019. In third place in this league table is the fund’s predecessor, Greystar Equity Partners X, which raised an additional $100 million compared with the firm’s latest offering in the series.
Greystar was looking to raise $3 billion for GEP XI, according to a filing with the US Securities and Exchange Commission dated May last year. In a filing dated June 2022, shortly after the vehicle was launched, the target size was stated as $2.5 billion.
In a statement, Wes Fuller, Greystar’s chief investment officer, said GEP XI “offers an attractive opportunity to invest in US housing and add sorely needed higher quality supply for the large and growing cohort of young professionals, middle income families and price conscious renters.”
Investors in GEP XI include the South Carolina Retirement System, which committed up to $150 million to the fund in May 2022, according to an investor document, and the Rhode Island State Treasury, which committed $20.6 million in March last year, according to PERE data.
“We believe GEP XI will benefit from Greystar’s framework to identify relative value among multifamily, student, build-for-rent single-family rentals and active adult properties,” said Kevin Kaberna, the firm’s executive director and leader of the investment management business in North America, in a statement.
The prior fund in the series, GEP X, met its target of $2 billion upon closure in October 2019. At the time, it was the largest multifamily-focused vehicle ever raised. It has since been surpassed by debt fund Berkshire Bridge Loan Investors II from Berkshire Residential Investments, which closed on $2.72 billion in 2021, and subsequently by Bridge Investment Group’s Bridge Multifamily Fund V, which closed with $2.26 billion last year.
By the summer of 2021, GEP X was fully deployed at a value of more than $4 billion including leverage, according to a PERE report.
With the ninth fund in the series, Greystar exited the entire fund through a single transaction, selling all 30 assets in the vehicle to Ivanhoé Cambridge, the real estate investment arm of Canadian pension fund CDPQ, for $3.6 billion in late 2021, per PERE’s previous reporting.
Recent Greystar Equity Partners fund performance:
GEP IX (vintage 2016, data as of September 30, 2023):
IRR: 13.53%; TVPI: 1.56xGEP VIII (vintage 2014, data as of September 30, 2023):
IRR: 12.54%; TVPI: 1.56xGEP VII (vintage 2011, data as of June 30, 2017):
IRR: 19.5%; TVPI: 1.74xSource: PERE. Subscribers can view full performance data here.
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