Centerbridge Partners Surpasses Target to Close Second Real Estate Fund at $2.3 Billion
Dedicated Real Estate Fund Raises 150% More Than Predecessor Fund
NEW YORK, Jan. 25, 2022 /PRNewswire/ -- Centerbridge Partners, L.P. ("Centerbridge"), a leading private investment firm, today announced that it has closed its second real estate fund, Centerbridge Partners Real Estate Fund II ("CPREF II"), with $2.3 billion in capital commitments, significantly above the original target of $1.5 billion. The fund received strong support from a diverse group of existing and new investors across the globe.
CPREF II will target thematic investment opportunities across self-storage and specialized storage, digital real estate, industrial and logistics, residential and subsectors experiencing positive tailwinds as a result of shifting consumer behaviors, with a focus on leisure and experiential real estate. The dedicated investment vehicle builds on Centerbridge's 15-year track record in which it has invested more than $10 billion of equity in real estate properties, companies and loans and securities across its platform. Led by Senior Managing Director and Head of Real Estate William Rahm, the firm's real estate team currently manages approximately $3.2 billion in dedicated real estate assets.
"We are pleased to close our second real estate fund, which marks an exceptional milestone for our real estate platform," said Jeff Aronson, Co-Founder and Managing Principal of Centerbridge. "We are thankful for the strong support of our new and existing investors as we continue to build on the performance of our first fund."
"We continue to see real estate markets evolve, as technology accelerates demand for asset classes from logistics to digital real estate and impacts how companies serve customers in residential, storage and leisure sectors," said Mr. Rahm. "The flexibility of our strategy and the breadth of our team's capabilities position us well to invest strategically in this dynamic environment. We look forward to identifying a diverse range of investments where we see strong growth and an opportunity to create significant additional value for our investors."
CPREF II represents over a 150% increase in committed capital from CPREF I, which closed in December 2018. The real estate investment team benefits from insights developed across Centerbridge's integrated platform, which also encompasses deep expertise across sectors including financial services, healthcare, industrials, and technology.
Hodes Weill Securities, LLC acted as placement agent for the fund, and Simpson Thacher & Bartlett LLP served as legal counsel.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines – from private equity to credit and related strategies, and real estate – in an effort to find the most attractive opportunities for our investors and business partners. The firm was founded in 2005 and as of December 31, 2021 has approximately $33 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.
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