AEW Capital Management has closed its latest opportunistic real estate fund, AEW Partners Real Estate Fund X (PX), with total equity commitments ranging from $1.75 billion to $1.77 billion. While the fund did not reach its $2 billion target, it marks the largest in the firm’s North American flagship series to date.
The fund is the tenth in AEW’s opportunistic line, which began in 1988 and focuses on identifying value in dislocated asset classes and underserved sectors. PX’s initial investments are spread across senior housing, multifamily, industrial, and retail properties—segments AEW believes are poised for recovery or growth amid ongoing market uncertainty.
AEW leadership cited decades of cycle-tested experience as a key driver of investor confidence. The firm says fundraising momentum reflects both long-term client trust and the belief that present market conditions offer compelling entry points for opportunistic real estate strategies. Current volatility—driven by shifts in interest rate policy, capital market dislocation, and changing tenant demand across property types—has created opportunities for institutional investors seeking returns through active asset repositioning and leasing strategies.
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The fund has drawn substantial support from U.S. pension plans and public institutions with long-term investment horizons. According to data from PERE, the Teachers Retirement System of New York City committed $150 million to PX, while both the New Mexico State Retirement System and the State Board Administration of Florida allocated $100 million each. The Ohio Police & Fire Pension Fund also committed $75 million.
PX is targeting a net internal rate of return of 15% with up to 67% leverage, aligning with the typical return profiles of value-add and opportunistic real estate vehicles. AEW plans to deploy capital over a multi-year investment window, betting that dislocation across multiple asset classes will offer pricing opportunities not seen in recent years.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
