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Rockwood holds close on $611m for tenth fund

The New York-based private equity real estate firm has an $800bn target for its latest value-added fund.

Rockwood Capital has held an interim close for its tenth value-added fund on $610.9 million, according to a filing with the US Securities and Exchange Commission last week.

The New York-based private equity real estate firm launched Rockwood Capital Real Estate Partners Fund X in July 2015, according to the SEC.

A spokeswoman for Rockwood declined to comment, but PERE understands that the firm is seeking to raise $800 million for Fund X with a $1.1 billion hard cap. Rockwood is targeting a 12 percent to 14 percent net internal rate of return. In the fund series, the company focuses on assets with the potential for income growth through repositioning, releasing, rehabilitation or development. The firm is aiming for a close by year end.

The firm’s predecessor vehicle, which was launched in June 2012, closed in 2013 on $678 million, far short of its $1 billion target. The fund is now fully invested, according to PERE research.

Last month, PERE reported that the Minnesota State Board of Investment allocated $100 million to the fund in the pension system’s first investment with Rockwood. Other investors in Fund X include the Public Employees’ Retirement Association of New Mexico and Kentucky Teachers’ Retirement System, which each allocated $60 million; the Illinois Municipal Retirement Fund, which invested $50 million; the Nebraska Investment Council, which pledged $40 million; and the District of Columbia Retirement Board, which doled out $25 million, according to PERE research.

London-based Threadmark Partners, Seoul-based IBK Securities and New York-based Park Madison Partners are acting as placement agents for the fund, according to the SEC filings.

Rockwood’s most recent publicly disclosed acquisition was the March purchase of 915 Wilshire Boulevard, a 23-story Los Angeles office building, with Lincoln Property Company for $128.5 million, according to real estate data provider Real Capital Analytics (RCA). The companies plan to update the ground floor lobby, valet area and outdoor patio space, and replace the building’s elevators, according to RCA.

Rockwood has about $8.9 billion in assets under management, according to its website.