Rockpoint holds largest-ever first close

The Boston-based manager has raised $1.65bn for its seventh opportunistic vehicle.

Rockpoint Group has held the first close for its latest opportunistic fund, raising $1.65 billion in what is the largest-ever first close for the Boston-based private equity real estate manager’s signature fund series.

Rockpoint Real Estate Fund VII entered the market in Q4 2021, with the firm so far raising capital primarily from existing investors, PERE has exclusively learned.

The Teachers’ Retirement System of the State of Illinois committed $150 million to Fund VII after committing $200 million to Fund VI. Other investors in the firm’s sixth fund include Connecticut Retirement Plans and Trust Funds and Employees Retirement System of Texas, per PERE data. They have not been confirmed as investors in Fund VII.

The fund’s strategy will replicate that of its predecessor, Rockpoint Real Estate Fund VI, and focus on multifamily, single-family rentals and industrial properties. Fund VI is now fully deployed and most of the capital raised for Fund VII is also being committed to these three property types.

Rockpoint was oversubscribed in its sixth fund, raising $3.8 billion against a target of $3 billion. Fund VII is targeting $4 billion and will hold a final close within a year. Rockpoint will target net IRRs of 13-15 percent and a 1.6x-1.8x equity multiple in its new fund, figures that replicate those in its most recent strategy.

Rockpoint has further committed to the industrial sector via other vehicles, including forming a partnership with Ben Harris, former chief executive of Link Logistics, Blackstone’s industrial operating platform, as  well as a separately managed account with Abu Dhabi Investment Authority seeded with $750 million.