CapRock On Track to Oversubscribe Its Latest Industrial Fund

CapRock Partners is on track to oversubscribe its latest industrial fund, despite the change in market conditions. CapRock Partners Industrial Value-add Fund III currently has $180 million in commitments, close to its initial $200 million target. The fund is scheduled to close fundraising at the end of the year.

“We had our first closing in February, right before the pandemic hit, and our target has always been to finalize the fund raise at the end of this year,” Jon Pharris, co-founder and president of CapRock Partners, tells GlobeSt.com. “We anticipate, based on investor interest, that we will be oversubscribed.”

Investor interest in the fund has not waned, despite challenges in performing due diligence and in-person meetings due to the pandemic. “What has changed is the onboarding process for new investors,” says Pharris. “It is more complicated to finalize due diligence efforts because of travel restrictions. Most investors typically like to do it onsite and meet key members of the staff. We have had to come up with a few creative solutions to do that, and some of those are video calls, video presentations to replicate the experience of an onsite visit and case studies. They get the sense of a site visit so they can continue with their due diligence efforts. That has been helpful in maintaining investor interest, despite travel restrictions.”