Rockpoint raises $5.8b for two real estate funds

By Kali Persall

Rockpoint, a Boston-based real estate private equity firm and registered investment adviser, has completed a final closing of its latest opportunistic vehicle, Rockpoint Real Estate Fund VI, with $3.8 billion in equity commitments. The fund well exceeded its $3 billion fundraising target.

In addition, Rockpoint also recently completed a final close of its latest lower risk vehicle, Rockpoint Growth and Income Real Estate Fund III, with $2 billion in commitments. Together, the two vehicles represent more than $5.8 billion in capital commitments.

Investors in Fund VI and RGI III include a diverse group of public and corporate pension funds, sovereign wealth funds, endowments, foundations, and other investors located throughout the United States, Asia, Canada, Europe, Latin America and the Middle East, according to Rockpoint. “In the wake of the challenges our economy has faced in recent months, we believe there will be significant opportunities across both Fund VI and RGI III, and we are excited to pursue what we expect will be attractive real estate investments in our target U.S. markets,” said cofounders Bill Walton and Keith Gelb in a statement.

Rockpoint employs a fundamental value approach to investing and targets select product types located primarily in major coastal markets in the United States, according to the firm. Rockpoint targets assets with intrinsic long-term value, at attractive prices relative to replacement cost and stabilized cashflows, and with particular emphasis on value creation opportunities and complex situations.

Since 1994, Rockpoint has sponsored 15 commingled funds and related co-investment vehicles, and raised some $25 billion in capital commitments. Rockpoint has invested or committed to invest in 424 transactions with a total peak capitalization of approximately $62 billion.