Walton Street Capital stopped accepting contributions for its fourth opportunity fund last week, after amassing $742 million of equity

Real Estate Alert, Feb 4, 2004

Walton Street Capital stopped accepting contributions for its fourth opportunity fund last week, after amassing $742 million of equity. The vehicle, called Walton Street Real Estate Fund IV, seeks to generate a 20% internal rate of return by investing in a variety of properties--mostly U.S. offices.

During the entity's 18-month fund-raising period, Walton Street brought in 95 investors, including 32 institutions. About two-thirds of them returned from previous Walton Street funds. The firm put $40.3 million of its own capital in the fund. The vehicle, which has a three-year investment period, has already spent $80 million on three properties. It can use up to 70% leverage, giving it $2.5 billion of buying power.