Rockpoint Raises $5.1B in Latest Fundraising Cycle

Rockpoint has raised $5.1 billion in aggregate equity capital commitments in the current fundraising cycle, including the close of Rockpoint Real Estate Fund VII with $2.7 billion in total equity capital.

The Boston-based private equity firm also raised an additional $2.4 billion in commitments including two single-investor funds and one single-asset continuation vehicle. Rockpoint said the funding comes from a diverse group of corporate and public pension funds, sovereign wealth funds, endowments and family offices from the U.S., Canada, Europe, Latin America, the Middle East and Asia.

Fund VII will target opportunities in the U.S. across a range of real estate asset classes, including industrial, multifamily, single-family rental, hospitality and select office investments. The fund expands on Rockpoint’s long-established flagship opportunistic series, leveraging the firm’s extensive local market knowledge and vertically integrated platform to create and enhance value at the asset level.

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Last year, IPE Real Asset reported that Rockpoint was aiming to raise between $3 billion and $4 billion for the fund and had invested about 20 percent of the capital raised as of February 2023. Rockpoint declined to comment on the fund’s current investment status when contacted by Commercial Property Executive.

Bill Walton, managing member at Rockpoint, said in a prepared statement the firm received strong support from existing and new investors. He said they expected to invest in assets where the firm’s longstanding relationships, local market expertise and vertically integrated capabilities could add substantial value. Walton stated the fund was well positioned to capitalize on compelling opportunities expected during dislocation across the real estate sector.

Keith Gelb, managing member at Rockpoint, said in prepared remarks Rockpoint has successfully invested through cycles and continued to deliver strong returns for investors. Noting that the Rockpoint management team has been investing together and with relationships since 1994, he said the organization has a deep and growing pool of talent and has never been stronger.

The firm has invested across multiple cycles and 19 funds and related co-investment vehicles representing a combined gross asset value of approximately $80 billion.

Earlier funds

In June 2020, Rockpoint completed equity raises for two investment vehicles with a total of $5.8 billion. At that time, the firm announced the final close of Rockpoint Real Estate Fund VI with a total of $3.8 billion and the final close of Rockpoint Growth and Income Real Estate Fund III, which raised an aggregate $2 billion.

Fund VI, which closed above its $3.3 billion target, was an opportunistic vehicle focusing on the acquisition of high-quality, well-located office, multifamily and hospitality assets below replacement cost, with plans to add value to the properties. Introduced in 2018, the fund had participants that included the State Board of Administration of Florida and The Merced County Employees’ Retirement Association Board, which contributed $25 million and $5 million, respectively. The Minnesota State Board of Investment committed $100 million to Fund VI. RGI III was also launched in 2018 and had a target of $2 billion. It also attracted a diverse group of sophisticated investors from the U.S. and across the globe.