Cerberus Raises $2.8B for Opportunistic Real Estate Fund

The fund surpassed its initial target of $2 billion.

Cerberus Capital Management closed approximately $2.8 billion of commitments for its flagship global opportunistic real estate strategy, called Cerberus Institutional Real Estate Partners V, LP. 

CIREP V will invest in direct assets, real estate companies, entities with significant real estate exposure and real estate-related debt, including non-performing loan portfolios.

“The investment landscape plays to the strengths of our global real estate franchise,” said Lee Millstein, president of Cerberus Global Investments and Global Head of Real Estate. “There are market dislocations and macrotrends that are driving compelling opportunities across our broad platform.”

CIREP V received more than $2.5 billion in commitments from existing and new limited partners with an additional $300 million committed to a dedicated investor fund for the strategy. It surpassed its initial fundraising target of $2 billion. 

A number of firms have raised opportunistic funds in recent months. For instance, Oaktree Capital Management LP closed Oaktree Real Estate Opportunities Fund VIII with capital commitments totaling $4.7 billion earlier this month. 

Cerberus has also established investment vehicles to target industrial service facilities, logistics centers and self-storage and cold-storage assets.

Earlier this month, industrial developer and investor Stonemont Financial Group partnered with an affiliate of Cerberus Capital Management to build a large-scale portfolio of these assets across the US. 

The joint venture aims to build a billion-dollar portfolio of industrial service facilities that will act as ‘mission-critical’ freight distribution transfer points for the storage and flow of goods to final destinations.

And in December, refrigerated real estate investor Provender Partners entered into a joint venture with an affiliate of Cerberus Capital Management LP to build a multibillion-dollar portfolio of cold storage processing facilities in the US. 

Overall, Cerberus’ real estate platform manages approximately $26 billion of real estate-related assets. It is supported by a team of more than 135 investment professionals and asset managers located in the US, Europe, Asia, South America and Australia.