Rockpoint Group Closes Fund with Nearly $1B in Commitments

Rockpoint Group has closed its Core Plus Fund I, which was not formally marketed, with $950 million of equity commitments.

Rockpoint Group L.L.C. has wrapped up its first lower-risk, lower-return core plus investment vehicle with a bang. The private equity firm closed Core Plus Fund I, which was not formally marketed, with $950 million of equity commitments.

Rockpoint took the offering to just a small collection of mostly existing investors and walked away with ample funds to pursue investments in high-quality assets in top-tier markets across the U.S. But that’s all Rockpoint has to say about it; a company spokesperson confirmed to Commercial Property Executive that the company is not sharing any details beyond those offered in the press release announcing the closing.

Rockpoint may not be talking, but the participation of some of Core Plus Fund’s contributors is in the public domain. The Oregon Investment Council, contributed $100 million to Core Plus Fund on behalf of the Oregon Public Employees’ Retirement Fund. During an OIC meeting in December 2013, Rockpoint executives told councilmembers that the fund’s target size was set at $1 billion and that investments would be made in stabilized commercial real estate assets, predominantly office and multi-family, with strong existing cash flows and less capital-intensive business plans than traditionally found within Rockpoint’s opportunistic investment funds.

Oregon’s interest comes as no surprise, and the participation of other pension funds wouldn’t break news either. According to a survey by alternative assets information provider Preqin of 856 investors that have made commitments to private real estate funds that primarily follow a core strategy, 41 percent are public pension funds.