The Rockpoint Group has raised $950m (€735m) for a core-plus fund as it moves beyond opportunistic strategies.
The private equity firm said the Core Plus Fund I will target low-risk, low-return investments in the US. Rockpoint said the fund was not formally marketed and the commitments came from a “small group of primarily existing investors”.
Rockpoint has historically sponsored opportunistic funds, having raised over $8bn of equity capital for such funds since 2003. The Boston-based firm said the core-plus fund would be “complementary to its opportunity funds” and focus on “high-quality assets in top tier markets”.
The core-plus fund, launched in the first quarter of this year, will mainly focus on office and multifamily properties. It will also originate or buy debt instruments that include preferred equity. At launch, firm said it was looking for $1bn for the new fund.
Leverage – and returns – are likely to be lower than for Rockpoint’s more opportunistic funds.
Late last year, the Oregon Public Employees Retirement Fund approved a $100m investment to the fund.
At the time, Tony Breault, senior investment officer for real estate at Oregon PERS, said market movement had meant that Rockpoint’s experience on previous deals was “not all that different” from the kinds of deals it will be pursuing for the core-plus fund”.