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AEW Capital Management has closed its tenth flagship North American real estate fund, AEW Partners Real Estate Fund X, with $1.8 billion in commitments, marking its largest fund to date despite missing its original $2 billion fundraising target. The shortfall reflects ongoing challenges in capital markets, including tighter liquidity and investor caution.
đź“Š Fund Performance and Strategy
- Fund X launched in April 2023 and remained on the market for over two years.
- It surpassed its predecessor, AEW Partners IX, which raised $1.2 billion in 2021.
- The fund targets dislocated and mispriced assets across multiple sectors, with initial investments in:
- Senior housing
- Multifamily
- Industrial
- Retail
AEW plans to deploy capital into 40 to 50 investments, each ranging from $25 million to $40 million, without predefined sector or regional allocations.
🏦 Investor Commitments
While the full investor roster remains undisclosed, notable commitments include:
- $150 million from the Teachers’ Retirement System of New York City
- $100 million each from the New Mexico State Investment Council and the Florida State Board of Administration
🗣️ Leadership Commentary
Tony Crooks, Managing Director and Senior Portfolio Manager, stated:
“We’re excited to be investing in what we believe is one of the most compelling market environments of the past decade”.
AEW emphasized senior housing as a particularly attractive opportunity, citing demographic trends and pricing dislocations.
For more details, see Bisnow’s full report.
