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Long Wharf holds $242m third close

The Boston-based firm, which spun out from Fidelity Investments in 2011, is targeting a mid-2016 close for the value-added vehicle.

Long Wharf Real Estate Partners has held a third close for its fifth vehicle, according to a filing with the US Securities and Exchange Commission Monday, garnering $241.7 million in commitments.

The Boston-based firm launched its US-focused value-added fund, Long Wharf Real Estate Partners V, in the first quarter of 2015 and held a first close on June 30. The firm plans to hold a final close for the fund this year, sources told PERE. Long Wharf declined to comment.

Long Wharf is targeting $350 million for the fund, with a net internal rate of return of between 12 and 15 percent. The vehicle will have a similar strategy to that of the firm’s earlier funds, with investments diversified across property sectors and geographies in the US. Long Wharf closed its fourth fund in September 2013 with $253 million in commitments.

Investors in Long Wharf Real Estate Partners V include the Municipal Fire and Police Retirement System of Iowa, which allocated $25 million; the San Diego City Employees’ Retirement System, which allocated $20 million; and the Houston Municipal Employees’ Pension System and the Houston Police Officers’ Pension System, which each allocated $15 million, according to PERE Research & Analytics.

Long Wharf spun out from Fidelity Investments in 2011. As part of Fidelity Real Estate Group from 1995 to 2000, the group invested primarily through a strategy that combined both value-added direct real estate and real estate securities in a single portfolio, according to its website.