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Mesa West Capital Raises $1.37B for Fifth Value-Add Debt Fund

February 14, 2023, 07:00 AM
Filed Under: Real Estate

Mesa West Capital, the private U.S. real estate credit arm of Morgan Stanley Investment Management, raised ~$1.37 billion for Mesa West Real Estate Income Fund V, L.P. (“Fund V” or the “Fund”), exceeding Mesa West’s original $1.0 billion fundraising target for the Fund.

Fund V is the latest and largest in Mesa West’s closed-end value-add series, which was established in 2005, and is the first successor vehicle raised by Mesa West since joining Morgan Stanley Investment Management.  Surpassing the $900 million in commitments raised for Mesa West Real Estate Income Fund IV, L.P., Fund V’s investors include a sophisticated group of domestic and international public and private pension funds, insurance companies and individual investors.

Fund V has been established to originate, purchase and manage loans secured by value-add / transitional commercial real estate assets throughout the United States, which has seen increased demand due to regulatory changes resulting from the Global Financial Crisis and the current volatility and dislocation in the capital and property markets.  The Fund intends to create a diversified portfolio of investments designed to produce current income and attractive risk-adjusted returns.

“We are extremely pleased with the continued support and trust from both our long-standing partners as well as new investors in Fund V.  In today’s environment, sophisticated investors are increasing their allocations to real estate credit with managers who have been tested through market cycles,” said Jeff Friedman, Principal of Mesa West. “Mesa West’s successful track record through multiple cycles, including through the Global Financial Crisis, has been a differentiator for the platform in continuing to organically grow our business over time.”

“The strong investor demand for this Fund underscores our continued focus on providing best-in-class private and listed real assets solutions across multiple equity and credit strategies to meet our clients’ objectives,” said John Klopp, Global Head of Real Assets for Morgan Stanley Investment Management.  “The successful Fund V capital raise builds on the strength of our growing Real Assets platform, which currently manages $62 billion in client assets.”

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