Waterton closes USD1.5bn Multifamily Value-Add Investment Fund

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Waterton has held the final close of the Waterton Residential Property Venture XIV (Venture XIV) fund with USD1.5 billion of equity commitments from a diverse group of global institutional investors. 

The fund is one of the largest dedicated multifamily value-add funds in the United States.

"We expect to see significant opportunities in the multifamily sector across the country due to the disruptive nature of the Covid recession," says David Schwartz, chairman and CEO of Waterton. "This fund represents a unique opportunity to invest in a strategy we've been executing for 25 years that evolves to capitalise on cycle-specific opportunities, which should be plentiful in the current market environment."

"The Venture XIV fundraising process speaks to our long-term performance and the strong investor relationships we've built over the years," says Michelle Wells, head of investor relations at Waterton. "We have a great group of global institutional investors in the fund – both long term and new partners – and especially appreciate the trust they placed in us during such an unusual time."

Waterton held the first close for Venture XIV in May 2020 and the final close in February 2021, which was completed virtually amidst restrictions on travel and in person meetings resulting from the global pandemic. The capital raise was led by Waterton's in-house investor relations team without the use of a placement agent. Kirkland & Ellis LLP served as legal counsel.

The first deployment from Venture XIV was a four-property, 1,824-unit portfolio acquisition in the Atlanta metro area that closed on 5 November, 2020. Subsequent acquisitions include a two-property portfolio in Hawaii and three assets in California. Similar to the firm's USD920 million predecessor fund formed in 2018, Venture XIV will pursue urban and suburban opportunities in major US markets, with an emphasis on well-located, well-maintained workforce housing in markets with favourable job growth, employment metrics and transportation logistics.  

Venture XIV will target cycle-specific distressed opportunities as well as traditional assets that would benefit from Waterton's vertically integrated design, construction and operations strategy, and plans to invest more than USD4 billion, including debt, in 50-plus multifamily assets.

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