Alex Shing’s Cottonwood Group has launched of a $750 million open-ended, multi-strategy real estate investment vehicle as it looks to cherry-pick post-pandemic opportunities.
According to Shing, the Cottonwood Founders Portfolio Fund was requested by longstanding investors who already committed $200 million to launch it.
In a statement, Shing said the fund will be able to “move quickly and nimbly in this unique market to secure and execute on high-potential deals,” noting: “The Fund carries an absolute return objective regardless of market condition, placing a priority on performance and overall success.
Shing added, “The launch of the Cottonwood Founders Portfolio Fund is a momentous milestone in our company’s nine-year history.
“Investor support has never been more critical as we identify valuable, high-profile opportunities across the country that are in alignment with our objectives and benefit both our investors and our bottom line. Adding the Fund to our wide and deep resources creates leverage and opportunity and bolsters great efficiency in our deal making process going forward.”
In addition to the $200 million in commitments from existing partners, Cottonwood has aligned itself with a 10 percent co-investment. As part of this high-growth, high-reward, risk-adjusted real estate fund, investors will have access to exclusive, high-potential investments and the option to take distributions every quarter, limiting the lock-up period to three years.
Working in tandem with the Fund, Cottonwood retains more than $700 million in commitments from separate accounts.