Sculptor Capital Closes $4.6B Real Estate Fund, Exceeding Target by $1.6B

Sculptor Capital Management exceeded its own expectations in its latest fundraising round, and by “exceeded” we mean by more than $1 billion in investment capital. 

The global alternative asset management firm, whose real estate business has completed $27 billion worth of investments over 22 years, announced this week the final close of Sculptor Real Estate Fund V with $4.6 billion in commitments, exceeding the firm’s $3 billion target value by $1.6 billion. 

The close marks a significant growth and evolution in Sculptor’s fundraising for CRE and is the firm’s largest fund to date. The firm’s previous four funds closed with totals of $408 million, $840 million, $1.5 billion, and $2.6 billion. 

Moreover, Fund V’s closing comes attached with a complementary closing of $825 million of co-investment capital that will also be used for commercial real estate credit and equity deals and allow those investors to participate directly. 

Steven Orbuch, founder and president of Sculptor Real Estate at Sculpture Capital, said that since the firm’s inception in 2003 it has prioritized investing in “nontraditional real estate” that provides income and total returns with “less macro correlation and lower volatility.”

“Our broad sector diversification, long-tenured team, and disciplined investment approach have uniquely positioned us to identify and capitalize on the exciting opportunities that exist and deliver consistent, risk-adjusted returns to our investors,” said Orbuch in a statement. 

A spokesperson for Sculptor Capital told CO that the fund will invest predominantly in both the United States and Europe and will aim to take positions in “value-based, situationally opportunistic investments.”

The fund will be asset-class agnostic but prioritize hospitality, gaming and leisure, digital infrastructure, health care, logistics and cold storage, though it will remain open to dozens of others core classes and alternatives, according to a release.  

“[We] look forward to continuing to focus on generating opportunistic returns with modest leverage and attractive current cash yields,” said Nicholas Hecker, chief investment officer of Sculptor Real Estate. 

The firm did not name any specific investors or sources of the fundraising capital. 

Brian Pascus can be reached at bpascus@commercialobserver.com.