Fund offers direct access to the US multi-family market through a well-diversified, risk-managed portfolio
Portfolio is positioned to capitalize on strong demand driving US apartment fundamentals
Mesirow Institutional Real Estate Direct Investments continues to serve a growing base of large domestic and international institutional investors
CHICAGO, June 30, 2021 – Mesirow (the "firm”) today announced a successful capital raise for the Mesirow Financial Real Estate Value Fund IV (the “Fund”), the latest in the firm’s series of risk-balanced, multi-family value-added investing opportunities. Reflecting the team’s record of strong risk-adjusted returns, fundraising was oversubscribed after reaching a hard cap of $750M established to ensure optimum portfolio diversification and the disciplined pacing of investments.
Managed by Mesirow Institutional Real Estate Direct Investments (“IRED”), the Fund invests in the multi-family housing sector across the top 25-30 markets within the US. In a post-pandemic environment, the team’s sector-focused strategy is positioned to capitalize on long-term secular themes, including an increasing US population, growing numbers of Generation Z, Millennial, and Baby Boomer renters, and a propensity to rent across a broadening grid of socioeconomic population cohorts.
Over the last five, ten, and thirty-year periods, apartments have outperformed all other property sectors tracked by the MCREIF Property Index1, creating an opportunity to generate positive alpha. Apartment lease renewal terms also provide investors with a degree of protection against rising inflation.
“We are pleased by the marketplace reception to this latest offering and by the strong conviction of our investors,” said Alasdair Cripps, Chief Executive Officer of Mesirow IRED. “Apartments are the only major property type where individuals as end users directly drive necessity-based demand. In a normalizing post-COVID market, we believe that constructive fundamentals – and strong results for our investors – will be supported by under-build in the apartment sector as well as rising construction costs and labor shortages in the housing industry.”
About Mesirow Institutional Real Estate Direct Investments
Mesirow Institutional Real Estate Direct Investments provides institutional investors with access to compelling direct investment opportunities and attractive risk-adjusted returns in the real estate market. With more than nearly 300 aggregated years of sector-specific experience and intellectual capital, the team is committed to creating value for investors through well-diversified multi-family asset portfolios. For more information, please visit mesirow.com/institutionalrealestatedirect.
Mesirow is an independent, employee-owned financial services firm founded in 1937. Headquartered in Chicago, with locations around the world, we serve clients through a personal, custom approach to reaching financial goals and acting as a force for social good. With capabilities spanning Global Investment Management, Capital Markets & Investment Banking, and Advisory Services, we invest in what matters: our clients, our communities and our culture. To learn more, visit mesirow.com and follow us on LinkedIn.
Mesirow was recently named one of the Best Places to Work in Chicago by Crain’s Chicago Business and one of the Top Workplaces by the Chicago Tribune.