True North Management Group, the New York-based real estate investment manager, has reached a $548 million final close on its third fund – True North Real Estate Fund III.
Fund III is the largest investment vehicle that True North has raised since its inception in 2004, topping Fund II which garnered $536 million back in 2010. But it still falls short of its $650 million target.
For Fund III, True North will pursue investments in high-yield commercial real estate debt and equity in the US.
The fund will be focused on three transaction types: distressed debt, opportunistic equity and what it terms rescue capital. Distressed debt investments will involve purchases of deeply discounted non-performing loans on assets affected by capital structure issues or undercapitalized sponsorship. Additionally, True North will seek to buy sub-performing mortgages at discounts from banks and insurance companies.
The firm puts the successful close down to strong support from consultants and institutional investors, including pension programs, endowments, foundations and high-net-worth family offices.
True North was founded by former Deutsche Bank executives Richard Gunthel and Paul Turovsky and currently has more than $1 billion in assets under management.
Atlantic-Pacific Capital worked as placement agent on the fund.