Pennybacker Capital raises $510m

The Texas-based real estate investment firm has surpassed target for its fourth fund by over $100m.

Austin-based Pennybacker Capital held a final close for its latest real estate fund at $510 million. Pennybacker IV exceeded its target of $400m. The value added fund will continue the firm’s strategy of pursuing middle market real estate assets in the Sun Belt.

The fund’s limited partners include a public pension, the Employees Retirement System of Texas, which committed $25 million and the Texas Permanent School Fund, a foundation which contributed $75 million.

The fund’s predecessor vehicle, Pennybacker III, closed with $322 million in total equity commitments.

Park Madison Partners served as the fund’s exclusive placement agent.