Pennybacker Closes Oversubscribed Fund at $1.6B

Pennybacker Capital Management has closed its sixth value opportunity fund with $1.6 billion in capital commitments. Initiated in 2021, Pennybacker VI LP exceeded its target and will seek investments in real estate assets across the U.S.

The fund received strong support from its existing investor base and also attracted numerous first-time commitments from leading institutional investors such as the Teacher Retirement System of Texas. TRS committed $100 million in March 2023.

The final closing of Fund VI comes two weeks after Goldman Sachs Asset Management’s Petershill program made a strategic investment in Pennybacker. Terms of the transaction were not disclosed.

Established in 2007, Petershill partners with leading alternative asset managers and helps accelerate their strategic development. Pennybacker will leverage the passive, minority investment to expand its middle-market platform.

Some of Pennybacker’s investments

The Austin, Texas,-based Pennybacker has approximately $4 billion in assets under management and pursues real estate and infrastructure investments through closed-end and open-ended vehicles across the capital structure.

Earlier this month, Urban Logistics Realty sold Urban District 35, a 440,663-square-foot industrial park in the Dallas submarket of Denton, Texas, to High Street Logistics Properties. Pennybacker was the equity partner for this development project.

In March 2023, an international aviation company signed a 23,040-square-foot lease at PROTO Park in Dallas, a property Pennybacker had purchased in 2020 from Denley Investment and Management. The firm had partnered with MG2 Ventures in 2021 to redevelop the industrial asset and boost its occupancy.