June 3, 2013
WaltonFundCommitments1

Walton Street Capital reached a close for its newest opportunistic real estate fund, Walton Street Real Estate Fund VII, on May 1, 2013, raising $781.6 million based on SEC Form D’s filed for Fund VII parallel funds.

Walton Street Fund VII had been on the market since at least September 2011, or around twenty months at the May 1 close. 

From SEC Form D’s as of May 1, 2013

Parallel Fund

Sold

Investors

WALTON STREET REAL ESTATE FUND VII-E, L.P.

$18,000,000

3

WALTON STREET REAL ESTATE FUND VII, L.P.

$18,000,000

2

WALTON STREET REAL ESTATE FUND VII-Q, L.P.

$470,775,000

11

WALTON STREET REAL ESTATE INVESTORS VII, L.P.

$21,000,000

2

WALTON STREET REAL ESTATE PARTNERS VII, L.P.

$201,625,000

16

WALTON STREET REAL ESTATE PARTNERS VII-NGE, L.P.

$2,200,000

1

WSC CAPITAL HOLDINGS VII, L.P.

$50,000,000

1

$781,600,000

 

When it launched Fund VII, Walton Street had set out to raise $2 billion by the end of 2012.  At $782 million, Fund VII reached just 39% of its goal.

$782 million represents a nearly 60% drop from Walton Street’s last fund (Fund VI), which raised $1.9 billion, closing in March 2009.  The total also puts Fund VII below Walton Street Fund V ($1.6 billion, June 2006 close).

A number of limited partners in previous Walton Street funds did not re-up in Fund VII.

For example, just 4 of 19 the public pension funds that had invested in Walton Street’s last fund have re-upped with Fund VII, based on publicly available information.

CommitmentsPerMonthIn comparison to peer funds that launched fundraising in 2011, Walton Street appears to have attracted commitments at a much slower pace.

Walton Street raised $39.1 million per month on average.  By comparison, Rockpoint Real Estate Fund IV raised capital twice as fast, at $81.3 million per month.  Westbrook Real Estate Fund IX attracted commitments at a pace of $122 million per month.

Fund

Target (millions)

Amount Raised (millions)

Status

As of

Launched

Months in market

Raised/ Month
(millions)

Blackstone Real Estate Partners VII

$13,000

$13,300

Final Close

Oct 2012

Apr 2011

18

$738.9

Starwood Distressed Opportunity Fund IX

$2,500

$4,200

Final Close

Apr 2013

July 2011

20

$210.0

Westbrook Real Estate Fund IX

$2,000

$1,589

Final Close

Nov 2012

Nov 2011

13

$122.2

Brookfield Strategic Real Estate Partners

$3,500

$2,805

2nd Close

May 2013

May 2011

24

$116.9

Rockpoint Real Estate Fund IV

$2,000

$1,950

Final Close

Mar 2013

Mar 2011

24

$81.3

Walton Street Real Estate Fund VII

$2,000

$728

Final Close?

Nov 2012

Sept 2011

20

$39.1

 

Table References:

Blackstone Real Estate Partners VII 
Amount, Status: “Blackstone Real Estate Fund Raises $13.3 Billion.” Blackstone Press Release.  Oct 10, 2012.
Months Since Launch: “Blackstone nears $13 billion real estate fund target: sources.” Reuters. June 29, 2012.

Brookfield Strategic Real Estate Partners
Amount: SEC Form D’s for Brookfield Strategic Real Estate Partners Fund A, Fund B, Fund C, and US Regional Fund A, May 30, 2013.
Months Since Launch, Status: “Brookfield raises $2.1bn for global fund.” PERE News. May 31, 2012.

Starwood Distressed Opportunity Fund IX
Amount, Status: Starwood closes on $4.2 billion for Fund IX.” PERE News. April 4, 2013. 
Months Since Launch: Starwood launches ninth fund, eyes up to $3bn.” PERE News. July 22, 2012.

Westbrook Real Estate Fund IX 
Amount, Status: Real Estate Spotlight.” Preqin. December 2012 (Vol. 6, Issue 12).
Months Since Launch: “Westbrook launches ninth global fund.” PERE News. Nov. 16, 2011.

Rockpoint Real Estate Fund IV
Amount: “Rockpoint Group, L.L.C. Closes Rockpoint Fund IV at $1.95 billion.” Business Wire. March 20, 2013.
Months Since Launch: ”Rockpoint eyes $2.5bn for Fund IV, looks to international investors for latest fundraise.” PERE Magazine (printed.). March 2011.
Status: “Rockpoint Group, L.L.C. Closes Rockpoint Fund IV at $1.95 billion.” Business Wire. March 20, 2013.

Walton Street Real Estate Fund VII
Amount, Status: SEC Form D’s for Walton Street Real Estate Fund VII parallel funds, May 1, 2013.

Months Since Launch :Minutes of the Texas Municipal Retirement System. Regular Meeting of the Board of Trustees. Sept. 21-22, 2012.

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