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Long Wharf holds final close on $438m – Exclusive

The Boston-based firm set a $350m target for the value-added vehicle.

Long Wharf Real Estate Partners has closed its latest fund well above target, PERE has learned.

The firm raised $438 million for Long Wharf Real Estate Partners V, a US-focused value-added fund that originally had a $350 million target, a source familiar with the matter said. The Boston-based firm had launched its fifth fund in the first quarter of 2015 and held a first close on June 30 that year.

A spokesman for Long Wharf declined to comment on the fundraising process.

The firm is targeting a net internal rate of return of between 12 and 15 percent, PERE previously reported. 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 Illinois Municipal Retirement Foundation, which earmarked $30 million; the Municipal Fire and Police Retirement System of Iowa, which allocated $25 million; and the San Diego City Employees’ Retirement System, which committed $20 million, according to PERE research.

Long Wharf was originally founded as Fidelity Investments’ real estate platform in 1993. Before spinning out from Fidelity in 2011, 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.

The firm’s latest announced transaction was the August purchase of a 13-story Dallas office, according to real estate data provider Real Capital Analytics. Long Wharf teamed up with Barclays’ real estate arm and private investment firm Goff Capital Partners to buy International Plaza Tower III (pictured) for an undisclosed price.