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Rockpoint closes Fund V at $3.3bn – Exclusive

The Boston-based private equity real estate firm has blown past its target to raise the largest property fund to close so far this year.

Rockpoint Group has completed its largest-ever capital raise, gathering a total of $3.3 billion for Rockpoint Real Estate Fund V, the latest offering in its opportunistic series.

It was unclear how much capital was raised for the fund versus co-investment capital, but PERE understands that the equity haul for the fund itself exceeded the vehicle’s $2.5 billion target and also was larger than Fund III, which collected $2.5 billion in July 2007. Fund V is now the firm’s largest real estate fund to date and the largest property vehicle to close so far this year. Last month, Westbrook Partners held a final close of $2.85 billion for Westbrook Real Estate Fund X.

Limited partners in Rockpoint’s Fund V included investors from the Middle East, Asia, Europe, Canada and the US. The vast majority were existing investors, including US pension plans Florida State Board of Administration, Employees Retirement System of Texas and South Dakota Investment Council, according to PERE Research & Analytics. Teachers’ Retirement System of the State of Illinois and Minnesota State Board were among the first-time investors in Fund V.

The fundraising period for Fund V spanned approximately 15 months. In December 2014, PERE reported that Rockpoint was due to hold a first close on Fund V, three months after its official launch. At the time, the firm had been expected to raise approximately $1.4 billion of its $2.5 billion target, its largest and fastest first close. As of last December, the firm was in the final stretch of its capital raise, having collected a total of $2.8 billion, including $2.2 billion for the fund and $600 million in co-investment capital.

Fund V has a similar strategy to that of its predecessor. According to documents from New Mexico Educational Retirement Board, which had pledged $35 million to the vehicle in November 2014, the latest vehicle will focus on value creation opportunities and resolving complex situations through the acquisition of office, hotel and multifamily properties in the largest US coastal markets. To date, Rockpoint has committed 20 percent of the fund’s capital, including the acquisition of a majority stake in Kaiser Center, a 975,000 square foot office complex in downtown Oakland, from San Francisco-based The Swig Company earlier this year.

Rockpoint is also said to be in the market with its second core-plus fund, Rockpoint Growth and Income Fund II, formerly known as Rockpoint Core-Plus Fund II, which was launched in June. The firm attracted a total of approximately $1 billion for the predecessor fund, Rockpoint Growth and Income Fund I, in 2014.