Stockbridge plans $500m capital raise for fourth US value-add property fund

Stockbridge Capital Group is planning to raise up to $500m (€453.5m) for a new value-add US real estate fund, according to people familiar with the matter.

IPE Real Assets understands that Stockbridge will soon begin raising capital for Stockbridge Value Fund IV, which will target a mixture of office, industrial, retail and apartments.

If the $500m capital raise is successful, it will be Stockbridge’s largest capital raise for its value fund series. The manager raised $217m for Fund I in 2011, $320m for Fund II and $355m for Fund III in 2017.

The maximum amount of leverage planned for the fund will be 65% at the fund level.

The targeted returns for Fund IV will be a net internal rate of returns in the range of 12% to 14%.

Stockbridge declined a request for comment.

Related images

  • Value Fund III's LINQ Apartment complex in San Jose

Have your say

You must sign in to make a comment


Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2572

    Asset class: High Yield Bonds.
    Asset region: Global.
    Size: $200m.
    Closing date: 2019-11-27.

  • QN-2573

    Asset class: Real Estate.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-06.

Begin Your Search Now