In less than 12 months since raising hundreds of millions of dollars, Heitman LLC has now secured more capital. Heitman Value Partners Fund VI has raked in a total of $2 billion in commitments.
This exceeded the $1.75 billion target and marks the investment management firm's largest closed-end fund on record. Over 30 investors spread across seven countries made contributions.
Additionally, another $620 million of co-investment capital has been provided, which should allow Heitman to deploy $6.55 billion in capital if it desires.
The Chicago-based company, through the pool, will target alternative CRE sectors such as self-storage, student housing, senior housing and medical office. Also, traditional segments, including industrial and apartments, will be focused on as well.
Heitman is eyeing between 12 and 14 percent in net fee and cost returns through Fund VI.
“In a period of continued market dislocation, investors are increasingly looking for partners with deep experience and cycle-tested strategies,” Mike Trench, executive vice president and co-portfolio manager of Heitman’s value series, said in a statement.
“HVP VI is designed to capitalize on the resilience of non-correlated sectors and the emerging opportunities created by today’s capital markets environment.”
The capital raising comes after the company announced the close of Heitman Real Estate Debt Partners III fund in February 2025, raising $806 million. This strategy targets core-plus and value-add equity investments through both alternative and traditional property sectors.
In North America, Heitman has deployed five value-add funds since 2004 and 103 investments. This comes out to $4.5 billion in equity commitments and $12.5 billion gross cost.
Meanwhile, CRE deal-making dropped by 10 percent year-over-year in November, according to data from Moody’s. This marked the second straight month of declines, led by fears over the weakness in the labor market and interest rates.
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