Farallon Capital Closes Fourth Fund With $650M

The vehicle will be used to invest in “inefficient segments.”


Farallon Capital Management closed a large investment fund to take advantage of a limited capital environment and the larger “widespread correction” in commercial real estate markets.

The firm announced Monday its fourth U.S.-focused opportunistic structure, Farallon Real Estate Partners IV (FREP IV) at more than $650 million of investor commitments, exceeding its original target of $500 million.

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The funds will be used to invest in “inefficient segments” of the national real estate market with a focus on industrial, multifamily, retail and office sub-sectors. FREP IV will target equity, preferred equity and distressed debt investments in relevant assets within the core sub-sectors.

Josh Dapice, a partner at Farallon, described the U.S. real estate environment as one where “we believe we are in the early innings of a widespread correction that will lead to attractive acquisition opportunities, particularly as it relates to working with owners in need of flexible and creative capital solutions.” Partner and head of U.S. real estate Rocky Fried said the new fund will benefit from the current scarcity of capital.

The San Francisco-based Farallon has deployed approximately $7.4 billion of capital in 263 investments over more than 30 years, according to the company. It also manages approximately $39 billion in capital and commitments.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.