The Real Deal Chicago

Mesirow Financial closes latest real estate fund at $567M

The funding will help support investment for multifamily properties and student housing
September 07, 2018 12:00PM

Mesirow Financial CEO Dominick Mondi and generic multifamily homes (Credit: Mesirow Financial and iStock)

Mesirow Financial closed its Real Estate Value Fund III at $567 million, attracting commitments from institutional investors across the U.S., Europe and Australia.

The fund is managed by Mesirow Financial’s Real Estate — Direct team, which focuses on the multifamily and student housing sectors in the United States, according to RE Journals.

The closing follows two previous funding rounds that allowed the firm to acquire more than $1.6 billion in assets.

The real estate investment team for Chicago-based Mesirow has raised $1.5 billion in equity over the past five years and has invested in nearly 13,000 multifamily units in 23 cities nationwide.

Private real estate investment funds closed out the second quarter with the lowest fundraising volumes since the first quarter of 2013, according to a report by research firm Prequin. The $22 billion in investor commitments in the second quarter was down from $37 billion worth of new private real estate funds year over year.

Still, a number of firms had success raising equity, including Kayne Anderson, which closed a $1.9 billion fund.

JLL, meanwhile, launched a $100 million fund to boost real estate tech startups. [REJournals] — John O’Brien