Mesa West tops fundraising target

The West coast debt shop has garnered $420m in commitments from LPs for its latest vehicle, the Mesa West Real Estate Income Fund II. It will continue fundraising until the end of the year, PERE has learnt.

Mesa West Capital has hit the fundraising target for its second debt vehicle – and is expected to continue garnering commitments after approval from LPs in the fund.

The Los Angeles-based firm was targeting $400 million for its Mesa West Real Estate Income Fund II. However, sources told PERE that existing LPs have given Mesa West the right to seek additional commitments owing to over-subscription. It is believed the firm will continue fundraising until the end of the year.

To date, Fund II has secured $420 million in equity commitments. Mesa West declined to comment.

In April, the Indiana Public Employees’ Retirement Fund committed $75 million to the vehicle. At the time, people familiar with the matter said LPs had given the firm the right to seek additional capital commitments.

However, Mesa West has also been hit by some LPs retreating from the private equity real estate space. In February, the $45.4 billion Pennsylvania Public School Employees Retirement System said it would pull back on planned commitments to the debt vehicle after provisionally approving a $125 million allocation in the summer of 2008.

The soft circle commitment was never finalised before PSERS made the decision not to fund the commitment this year. At the time a spokeswoman for the pension said: “These were deals which were never executed or finalised and we decided to not fund them at this time due to the fact that our allocation to this asset class has increased due to the denominator effect.”