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RockBridge collects $438m for Fund VI

The Columbus, Ohio-based private equity firm exceeded the original target for its latest hospitality fund and ultimately raised its hard cap.

RockBridge Capital has held a final close for RockBridge Hospitality Fund VI, raising $438 million in commitments in approximately 18 months. The equity haul exceeded the vehicle’s original target of $350 million, as well as its original hard cap of $400 million.

RockBridge held a first close of $101.3 million for Fund VI in May 2013 and had gathered a total of $219.9 million one year later, according to filings with the US Securities and Exchange Commission. As of October 16, the firm had raised $398.3 million for the vehicle and increased its hard cap to $450 million. Limited partners encompassed pension plans, insurance companies, endowments and foundations, family offices and international investors, including the Ohio Bureau of Workers’ Compensation, which pledged $50 million to the fund in April.

“We are very pleased with the positive response from both existing and new institutional investors,” said Jim Merkel, Rockbridge president and chief executive, in a statement. “Our focus and execution on delivering consistently high absolute returns for our investors has resonated with the institutional and alternative investment communities.

Fund VI, a value-added vehicle that will invest in hotels across the US, represents RockBridge’s largest real estate capital raise to date. In fact, it is nearly double the size of its predecessor fund, which attracted $225 million in equity in 2011.

On behalf of the fund, RockBridge already has invested $131 million through 11 closed deals in eight states. In April, the firm announced that it had acquired The Cliff House Resort & Spa, a 166-room resort in Ogunquit, Maine, through a joint venture with Maine-based hoteliers Marc Dugas and Peter Anastos.

Los Angeles-based placement firm Triton Pacific Capital served as the placement agent for the fund. Law firm Morrison and Foerster acted as legal counsel.