Chicago — HSRE raised $750 million in equity capital from public and corporate pension funds, foundations, insurance companies and family offices.
Chicago — Harrison Street Real Estate Capital (HSRE) has completed the final closing of its fourth opportunistic fund, Harrison Street Real Estate Partners IV, L.P., raising $750 million in equity capital, $150 million in excess of its original target of $600 million. Investors in the fund offering include some of the world's largest public pension funds, corporate pension plans, endowments, foundations, insurance companies and family offices.
The fundraising period from first to final close lasted five months. The original target for the fund raise was $600 million with a $750 million hard cap. Fund IV will have in excess of $2.5 billion in purchasing power.
With this closing, the firm has raised approximately $4 billion in discretionary equity capital for its private and public real estate offerings since its first fund was launched at the end of 2006. Currently, the firm has $5 billion in real estate assets under management, including third party debt.
Harrison Street says it is the largest and only private investment manager with both an open-end core and opportunistic fund series focused on the acquisition and development of need-based real estate assets in the education, healthcare and storage segments of the market. These property types include both on and off-campus student housing, senior housing, medical office buildings and related healthcare properties as well as storage properties.
Christopher Merrill, co-founder, president and CEO of the real estate private equity firm, announced the milestone, saying, "We couldn't be more pleased with the LP's and consultants that have continued to support our firm and our differentiated investment strategy."