Harrison Street, an alternative real asset investment firm focused on the education, healthcare and storage sectors, has closed its seventh real estate fund at a hard cap of $1.3 billion, beating its $950 million target. Also, Harrison Street raised $302.5 million in co-investment vehicles to invest alongside Fund VII for a total of $1.6 billion of equity raised. Fund VII secured commitments from over 60 global institutional investors.
CHICAGO – August 19, 2019 — Harrison Street, one of the largest alternative real asset investment firms dedicated to the Education, Healthcare and Storage sectors, today announced the final close of the firm’s seventh U.S. opportunistic real estate fund, Harrison Street Real Estate Partners VII, L.P. (“Fund VII”) at the fund’s hard cap of $1.3 billion, exceeding its original $950 million target. Harrison Street raised an additional $302.5 million in co-investment vehicles to invest alongside Fund VII for a total of $1.6 billion of equity raised and total buying capacity of approximately $4 billion.
Building upon Harrison Street’s existing opportunistic fund series, Fund VII is designed to provide innovative and flexible capital to demographic-driven, needs-based assets across the senior housing, healthcare, student housing, life sciences and storage sectors. Fund VII has committed 26% of its equity capital and expects more than half of the portfolio to be comprised of senior housing, healthcare delivery and life science investments as demand drivers include an aging population that continues to grow and live longer.
Over 60 global institutional investors committed to Fund VII. Harrison Street received significant support from existing investors who contributed nearly 65% of the total committed capital to the fund, in addition to new limited partners.
Christopher Merrill, Harrison Street’s Co-Founder, Chairman and Chief Executive Officer said, “We are grateful for the continued confidence and strong backing we received for Fund VII from existing and new investors. Harrison Street has continued to distinguish itself as a leader in alternative real asset investing by remaining focused on our target sectors, partnering with best-in-class operating partners and working hand-in-hand with leading universities and health systems to provide flexible and innovative capital solutions to meet their most pressing needs.”
Merrill added, “While it is certainly gratifying to see the creation of a robust market around the asset classes we have focused on exclusively for over a decade, we are exceptionally proud of our track record of generating strong risk-adjusted performance for our investors across assets classes and market cycles. We look forward to continued innovation and further developing deep relationships within our core markets as we see a great tailwind for these asset classes over the coming decade.”
Since inception in 2005, the firm has invested in 957 properties across 47 states with a gross cost of $28.1 billion. Harrison Street is currently investing through its U.S. and European Opportunistic fund series as well as its Core real estate and Social Infrastructure open-end funds. To date, Harrison Street has raised nearly $16 billion in discretionary capital from over 375 investors throughout the world.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. The firm has created a series of differentiated investment solutions focused on the Education, Healthcare and Storage sectors. Headquartered in Chicago with an office in London, the firm has more than 140-employees and approximately $21.5 billion in assets under management. Clients of the firm include a global institutional investor base from 11 countries. For more information, please visit www.harrisonst.com.