Walton Street Capital closed its seventh real estate fund, Walton Street Real Estate Fund VII, with $1.4 billion, which includes its parallel funds, said Eric C. Mogentale, managing principal.
The fund’s target started at $2 billion but quickly was reduced to $1.5 billion in light of investors’ disinterest in opportunity funds, Mr. Mogentale said. Walton Street’s sixth fund raised $1.9 billion.
The new fund will make opportunistic and value-added real estate investments mainly in the U.S. The fund has closed on 18 investments so far and expects to soon close on two more.
Two-thirds of Fund VII equity commitments received came from existing investors. Investors in the fund include the $7.8 billion Arizona Public Safety Personnel Retirement System, Phoenix, and the $42.8 billion Illinois Teachers’ Retirement System, Springfield.