Mesa West Capital has closed its Mesa West Real Estate Income Fund III, LP with $752 million in equity commitments, announced principal Ryan Krauch.
With a target of $650 million, Mesa West Capital has now exceeded its fund raising goal for the second time in the last three years.
In April 2010, the Los Angeles-based debt fund manager, closed Mesa West Real Estate Income Fund II, LP with $614.5 million of equity commitments, well over its $400 million target.
“We have benefited from the fact that pension funds, endowments, foundations and off-shore investors have increasingly prioritized cash flow and safety in this challenging fundraising environment,” said Krauch.
“As real estate debt continues to find a permanent home in the allocations of many institutional investors, our track record and focus certainly has played a role in in the success of our fundraising efforts.”
According to a recent study by Preqin, institutional interest in real estate debt has grown from eight percent in December 2011, to 23 percent in August 2013.
Mesa West co-CEO Jeff Friedman, said, “Despite the easing of the capital markets, there remains an approximate $2 trillion funding gap between the amount of CRE debt maturing over the next several years and the available capital to refinance that debt.
“There are tremendous opportunities for us as a lender to provide moderate leverage loans through both of our platforms on assets in solid infill locations with strong sponsorship.ˮ
“While not the sexiest strategy, it has proven to help investors meet their actuarial yield requirements with the least amount of risk possible,” added co-CEO Mark Zytko.