Cottonwood Raises $1B for Investment Platform
The private equity firm plans to invest in a variety of commercial and multifamily assets.
Private equity firm Cottonwood Group has raised $1 billion for its new investment platform dubbed Cottonwood Real Estate Special Situations Strategy. The fund, officially closed on August 31, exceeded its original fundraising goal. It will focus on sectors such as industrial, data centers, apartments and mixed-use projects.
The strategy focuses on identifying opportunities in real estate credit and event-driven equities, while still maintaining flexibility to invest across asset types.
Last month, Jeffrey Horowitz, Cottonwood Group’s CFO, chatted with Commercial Property Executive about changes in the strategies of foreign investors, who are shifting toward reliability and quality and favoring income-generating assets over speculative growth plays. This change is driving capital toward multifamily and industrial properties, where returns depend on consistent growth in net operating income rather than rising yields.
READ ALSO: CRE Equity Investors Pile Into Private Debt
Several large CRE players have been busy in the first half of the year closing investment vehicles. The list includes SL Green Realty Corp., which, similar to Cottonwood Group, has also surpassed the $1 billion milestone for its SLG Opportunistic Debt Fund. The vehicle launched last year and focuses on distressed credit opportunities in New York City’s office and retail real estate sectors.
More capital raised for CRE
In the first quarter of 2025, Brookfield Asset Management raised $7.1 billion of capital for real estate plays, including $5.9 billion for the fifth vintage of its real estate flagship fund. The capital brought the company’s total strategy size to approximately $16 billion, the largest real estate strategy BAM has raised so far.
In June, Walker & Dunlop Investment Partners closed its seventh discretionary equity fund, dubbed Fund VII. The $135-million vehicle focuses on industrial real estate and middle-market multifamily assets.
Last month, Nuveen and affiliate Nuveen Green Capital raised $785 million in new capital commitments for Nuveen C-PACE Lending Fund III. During the same month, Carlyle closed its 10th U.S. opportunistic real estate fund, Carlyle Realty Partners X, with $9 billion of total commitments.
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