Crow Holdings secures $3.7bn for US value-add real estate strategy

Crow Holdings has secured $3.7bn (€3.4bn) in capital commitments to invest in US value-add real estate.

The firm said it has closed the Crow Holdings Realty Partners X (Fund X) at $3.1bn and secured $600m in capital to co-invest alongside the fund. Crow Holdings raised $2.6bn in 2021 for Fund IX and its co-investment vehicle.

Crow Holdings said more than 70% of the capital for Fund X came from existing investors reinvesting in the value-add fund series. The remaining capital came from a range of new investors, including global banks, sovereign wealth funds, insurance companies, pension plans, family offices and high-net-worth individuals.

As previously reported, Teachers’ Retirement System of Louisiana and the Illinois State Universities Retirement System approved $100m and $50m commitments, respectively.

Fund X intends to invest in value-add real estate assets across the US, primarily in industrial and multifamily, as well as in specialist sectors, including manufactured housing, convenience retail, self-storage and student housing.

The manager said over 25% of Fund X’s capital have so far been committed across 14 investments.

Coe Juracek, senior managing director of investor coverage at Crow Holdings Capital, said: “Our successful fundraise, especially in the current challenging equity market environment, is a testament to the faith our returning and new investors have in our ability to identify and secure attractive real estate investments in our core focus areas. We are incredibly grateful for their continued support and partnership.”

Bob McClain, CEO of Crow Holdings Capital, said: “This fund will continue to selectively invest in real estate assets that we believe benefit most from a number of long-term secular trends that support their continued income growth, primarily in the industrial and multifamily sectors in high growth markets across the country.”

Michael Levy, CEO of Crow Holdings, said: “We believe this fundraise represents not only our partners’ confidence in the series’ performance, but also an appreciation of the growth in the platform. 

“We continue to increase and diversify our offerings and adjacent strategies to be of greater service to our investment partners, providing increased access to more of the firm’s core competencies and best ideas.”

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