Chicago-based Waterton has successfully closed its latest real estate fund, Waterton Residential Property Venture XV, L.P., with a total of $1.73 billion in equity commitments from various global institutional investors. The firm’s own investor relations team led the capital raise process, with legal counsel provided by Kirkland & Ellis LLP.
According to David Schwartz, chairman and CEO of Waterton , the current market conditions have created significant opportunities in the multifamily sector due to interest rate fluctuations and an oversupply in certain markets. He believes that this new fund will allow them to capitalize on these opportunities and generate additional returns for their investors.
The first close for Venture XV took place in December 2022, followed by strategic investments throughout 2023. These include a 346-unit property located in Chicago’s Loop area as well as properties near Manhattan and Seattle worth over $100 million combined through both mezzanine debt and securitized debt investments. The fund will focus on distressed properties as well as traditional value-add opportunities within the multifamily sector.
Waterton’s successful closing of its latest real estate fund marks another milestone for the company which has been executing similar strategies for almost three decades now. With a strong conviction towards this particular sector coupled with unique market conditions at present, they are confident that they can achieve alpha returns through their targeted investment approach.
Overall, this news highlights Waterton’s continued success not only within Chicago but also across other major cities such as New York City and Seattle where they have made recent acquisitions totaling over $100 million combined through credit-focused investments including mezzanine debt options or securitized debts while targeting distressed assets alongside traditional value add properties under their newly-closed venture – Venture XV LP .
