Charlesbank Capital Partners, LLC Closes Fifth Realty Fund At $494 Million

Business Wire, August 16, 2001

Business Editors

BOSTON--(BUSINESS WIRE)--Aug. 16, 2001

Charlesbank Capital Partners, LLC announced that it has held a final closing on $494 million for Charlesbank Realty Fund V, exceeding its $400 million target. The new fund - the first to include investors other than Harvard University - secured capital from a range of limited partners, including 10 other endowments, one corporate pension fund, four foundations, one bank and one family trust.

Charlesbank typically invests in equity or equity-linked mezzanine securities, often in joint venture with local developers or operating partners. Investments may include acquisitions, development and redevelopment, repositioning, and recapitalizations, spanning a range of property types including office, residential, hotel, industrial/service and retail. Investing between $15 million and $50 million per transaction, Charlesbank expects to have most of the fund invested over a four-year period.

Putting the new fund to work is a team of 11 investment professionals led by managing directors William P. (Chip) Douglas, Charles F. Wu and Mary Lou Boutwell. They drew the first capital in March 2001, forming a partnership with Benchmark Assisted Living to acquire and manage The Crossings Portfolio, a portfolio of eight senior and assisted-living communities in New England. The initial commitment to the investment totals $22.5 million, or approximately 5% of the fund.

Charlesbank Capital Partners, LLC is a private investment firm with more than $2.5 billion of capital committed to acquisition and financing for developing real estate assets and growing companies. The firm has offices in Boston and New York.