Last week, Mesirow Institutional Real Estate Direct announced the final closing of the Mesirow Financial Real Estate Value Fund V after securing $1.245 billion in investor commitments, according to a news release.

The Chicago-based financial services firm established the fund’s hard cap to maintain portfolio diversification and ensure disciplined investment pacing.

Fund V will target value-add multifamily assets across the top 25 to 30 U.S. markets, focusing on building asset appreciation through revenue enhancement, cost optimization and property management. 

“With Fund V, we remain focused on multifamily assets in select major U.S. metropolitan markets, building on a platform with more than $8.5 billion in assets under management,” said Mesirow Institutional Real Estate Direct CEO Alasdair Cripps in the news release.

Mesirow is attracted to the multifamily sector's long-term fundamentals, including durable rent profiles, inflation protection and inelastic demand.

“Fund V will continue our focus on repositioning underperforming class A multifamily assets, acquired at discounts to replacement cost, in high-growth markets where barriers to entry reduce the risk of oversupply,” Cripps said.

Other large firms have also announced major fundraising plans for value-add apartments this year. For instance, Fairfield held its final close in February for its U.S. Multifamily Value Add Fund IV LP with $1.47 billion of equity commitments, including $350 million of co-investment equity, exceeding its $1 billion target, according to a news release. 

The San Diego-based owner, developer and operator will focus on acquiring value-add multifamily assets in more than 30 major metros nationwide with the vehicle, which is its largest to date. As of February, it had deployed approximately $385 million of equity in 16 assets.

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