Farallon Capital Management Seals $650M Fund

Farallon Real Estate Partners IV will target equity, preferred equity and distressed debt investments, with a particular focus on the industrial, multifamily, office and retail sectors. Image by Pexels via Pixabay.com

Farallon Capital Management has closed its fourth U.S.-focused real estate fund, Farallon Real Estate Partners IV, with more than $650 million of aggregate investor commitments. The oversubscribed fund initially had a $500 million target.

The value-driven, opportunistic fund follows Farallon’s strategy of investing in what it terms “inefficient segments” of the U.S. real estate market, with a particular focus on the industrial, multifamily, office and retail sectors, the firm said in a statement. The investment vehicle will target equity, preferred equity and distressed debt investments in those spaces.

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The fund will be managed and operated by Farallon’s 12-member real estate team, which is led by Head of U.S. Real Estate and Partner Rocky Fried and Partner Josh Dapice. The firm’s experience, as well as its established relationships with investors in the U.S. and abroad, will allow the investment vehicle to benefit from the scarcity of capital in the U.S real estate market, Fried said in prepared remarks.

San Francisco-based Farallon has deployed $7.4 billion of capital across 263 investments over the past three decades. The fund’s limited partners include both existing and new Farallon investors, including endowments, family offices, insurance companies, investment advisories and public and corporate pensions.

Articulating, in prepared remarks, the company’s belief that the U.S. real estate market is in the early stages of a widespread correction, Dapice noted that the company expects this economic environment to provide attractive acquisition opportunities.