Heitman Hauls in nearly $3B in its Largest Closed end Fund

Heitman just closed the firm’s largest-ever real estate fund.

The Chicago-based investment manager said Tuesday it raised $2.6 billion in commitments for its latest value-add fund, blowing past its original target and cementing one of the larger real estate fundraises of the cycle. CoStar reported that Heitman closed its Value Partners Fund VI with $2 billion in equity commitments, exceeding its $1.75 billion goal.

Investors also pledged another $620 million in co-investment capital, bringing total commitments to $2.6 billion. With leverage, Heitman said the fund will have nearly $6.6 billion in buying power to deploy across medical offices, student housing, senior housing, self-storage, multifamily and industrial properties over the next several years.

The fund drew commitments from 30 investors across seven countries, though Heitman did not disclose names. It is the firm’s largest closed-end fundraise to date, a notable milestone at a time when many managers are still struggling to get capital off the sidelines.

“We view this phase of the cycle as an attractive entry point,” CEO Maury Tognarelli said in a statement, pointing to strategies driven by secular demand and income growth rather than pure appreciation. The fund is targeting returns of 12 percent to 14 percent.

Heitman now has $48 billion in assets under management, and has raised and utilized five value-add funds since 2004, according to the outlet.

Heitman said it has already put nearly half the capital to work. The firm has committed $847 million, or about 42 percent of equity commitments, across 12 investments so far, a spokesperson told the publication. While specific deals weren’t identified, the investments span medical office, student housing, multifamily, industrial, cold storage, industrial outdoor storage and self-storage.

The fund puts Heitman alongside a growing list of global managers showing fundraising momentum despite higher borrowing costs, tariff uncertainty and a slower market. Brookfield recently announced a record $30 billion haul, while Carlyle Group closed a $9 billion real estate fund and Bain Capital raised $3.4 billion. Closer to home, fellow Chicago firm Mesirow said last year it secured more than $1.2 billion for multifamily strategies.

Heitman said the new fund will balance less cyclical property types with more traditional growth potential in apartments and warehouses.

— Eric Weilbacher