Kennedy Wilson has closed its latest real estate fund on $125 million – less than half the original target.
The Beverly Hills-based real estate investment firm said in a statement fundraising had been “challenging” but that commitments had been garnered from university endowments, public funds, foundations, Taft Hartley investors and family offices. A spokesperson was unavailable for further comment at press time.
The firm said in a January 2008 company newsletter that the vehicle was targeting $300 million, and that two investors from the firm’s fully realised Fund I reupped for a total of $30 million.
Executive vice chairman Donald Herrema said the vehicle was targeting distressed equity and debt investments on the West coast of the US and Hawaii. In May, the firm’s multifamily group teamed up with debt shop PCCP to acquire a large apartment complex in Alameda, California for $86 million all-cash.
Kennedy Wilson, which also operates 10 separate accounts as well as value-added and opportunistic funds targeting the US, Hawaii and Japan, was taken over by David Minella’s special purpose acquisition company (SPAC) Prospect Acquisition Corp. in November last year.
As part of the take-over it was revealed Prospect could pump $198 million of cash into Kennedy Wilson, with $145 million being used as fund, joint venture and separate account co-investment capital and $22 million to pay down debt.