Harrison Street raises $2.5bn at final close for ninth US opportunistic fund

Harrison Street has raised more than $2.5bn (€2.3bn) at the final close of its ninth US opportunistic real estate fund.

Investors from previous funds in the series accounted for around 60% of total commitments. New institutional investors included public and corporate pension plans, sovereign wealth funds, foundations and endowments, and insurance companies.

Christopher Merrill, Harrison Street’s co-founder, chairman, and CEO, said: “The successful closing of Fund IX, especially during a period of capital market disruption, is a testament to the resilience of our asset classes and the continued confidence our global investor base places in our innovative investment approach.

“For nearly two decades, Harrison Street has been a first mover across alternative sectors. Having successfully navigated numerous market cycles, we recognise that periods of uncertainty and macroeconomic volatility often present the most compelling investment opportunities. With Fund IX, we have carefully constructed a portfolio that we believe not only seizes on these unique market conditions but will emerge as a strong vintage.”

Fund IX is a continuation of Harrison Street’s US opportunistic fund series, which the manager said is “strategically positioned to capitalise on opportunities in fundamentally sound alternative real estate sectors that possess resilient and growing demographic-driven demand despite macroeconomic headwinds”.

To date, Fund IX has allocated close to 70% of its total equity across 70 assets spanning seven alternative sectors, with its largest concentrations in student housing, senior housing, and data centres. The remaining capital is expected to focus primarily on acquiring well-located but underperforming assets, as well as those with strained capital structures in need of liquidity, offering distressed pricing, Harrison Street added.

Rob Cook, senior managing director at Harrison Street and portfolio manager for Fund IX, said: “We are witnessing a persistent and noticeable investor rotation from traditional real estate into alternative sectors, a trend that has accelerated in its trajectory in recent years.

“With Fund IX, we continue to be focused on deploying strategic capital that leverages our experienced team, deep relationships, and consistent commitment to risk management to create high-quality and resilient portfolios across alternative real estate sectors thatmeet the growing investor demand.

“As a leader in alternatives, we are distinctly positioned to create scale across these sectors and manufacture portfolios that showcase core characteristics at a time when we believe operating fundamentals are the strongest that we have seen in decades.”

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