Westport closes third fund

Westport Capital Partner Fund III has closed on more than $571 million in equity commitments, or 15 percent above its target. The value-added vehicle will focus on distressed opportunities throughout the US, including distressed debt and real assets.

Westport Capital Partners has closed fundraising for its third real estate fund at 15 percent above its initial target, PERE has learned. 

Although representatives from the Westport, Connecticut-based firm declined to comment, sources familiar with the matter have revealed that Westport Capital Partners (WCP) Fund III closed on $571.2 million in equity commitments on 30 March. That amount is above the firm’s original target of $500 million for the commingled value-added vehicle. 

WCP III was launched in 2010 to target distressed opportunities in the US. The fund, which sought minimum commitments of $5 million from institutional investors, held multiple closes over the course of 2011, culminating in an interim close of $400 million in December 2011. 

Through the fund, Westport is targeting both distressed debt and real assets for all property types, avoiding ‘trophy’ properties. The firm, which is targeting low-leverage returns in the mid-teens, already has put some 25 percent of the fund’s capital to work, according to one source. 

The firm’s previous fund, WCP II, closed on roughly $392 million in commitments during the first quarter of 2010. That fund also invested in distressed debt and real assets in the US, as well as select opportunities in India and Vietnam. 

Westport expects to begin raising its next fund in the second half of 2012.