Chicago-based investment firm Mesirow has closed its latest real estate fund, securing $1.25 billion in investor commitments to acquire apartment buildings in some of the nation’s largest metropolitan areas. This new fund, Mesirow Financial Real Estate Value Fund V, marks a substantial leap for the company, representing a 66% increase in capital raised compared to its previous fund.
The fundraising comes at a time of uncertainty in the broader economy, with persistent concerns about high borrowing costs and shifting economic policies. Despite these headwinds, Mesirow’s latest fund closure reflects strong investor interest in the multifamily asset class, following a period of sluggish property sales attributed to rising interest rates. The firm’s move mirrors similar activity by other major players in CRE, such as Brookfield Asset Management, which recently closed a $6 billion real estate fund.
Alasdair Cripps, CEO and chief investment officer of Mesirow Institutional Real Estate Direct, which now manages more than $8.5 billion in assets, expressed gratitude for the trust placed in the company by both new and returning investors, particularly given the current market volatility.
Fund V will focus on acquiring and repositioning underperforming Class A apartment buildings in the top 25 to 30 U.S. cities. The strategy involves purchasing properties at prices below the cost of constructing new buildings and targeting high-growth markets where regulatory and geographic barriers help limit new supply. The firm believes this approach reduces risk and enhances the potential for value creation.
Mesirow’s leadership points to the enduring strength of the rental housing market as a key driver behind their investment thesis. With demand for rental units remaining high and the sector offering a measure of protection against inflation, the firm sees significant opportunities for long-term growth. The fund’s strategy centers on enhancing property values through revenue growth, cost efficiency, and high-quality management.
Cripps described Mesirow’s investment approach as “proven and cycle-tested,” underscoring the company’s track record of navigating various market conditions. Mesirow focuses on value-added strategies and disciplined investment pacing to deliver strong returns while maintaining a diversified portfolio, he said.
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