Today, Heitman announced the close of its Heitman Real Estate Debt Partners III fund (“HDP III” or “the fund”) at $806 million in capital commitments, exceeding its $600 million fundraising goal. The fund will aim to provide creative financing solutions to high-quality sponsors executing real estate projects in traditional and alternative property sectors.
HDP III will seek to capitalize on dislocations in the capital markets and will provide loans to sophisticated real estate operators across the United States. The fund deploys an approach that targets returns that fall between core-plus and value-add strategy equity programs.
“Our latest fundraise demonstrates Heitman’s ability to navigate the current market environment and our experience in executing debt strategies that utilize innovative investment structures,” said Jon Lindell, Executive Vice President and Portfolio Manager for HDP III. “As demand for flexible and reliable financing solutions grows, we believe the real estate debt market is well-positioned with attractive opportunities.”
The close of HDP III reflects Heitman’s ability to attract capital from investors seeking income generation and portfolio diversification through real estate-backed debt. As part of the capital raise, the Fund received support from existing investors in the fund series along with interest from investors that are new to the firm.
Heitman’s debt platform manages $5.5 billion in assets under management, investing across structured senior debt, value-add and mezzanine debt, and opportunistic debt.
AUM as of December 31, 2024
