Colony Capital raises $492m for opportunistic fund

Colony Capital has raised $491.7 million for Colony Distressed Credit & Special Situations Fund III, according to a filing with the SEC, bringing the fund nearly halfway to the $1 billion fundraising goal it set when it launched in July 2013.

The debt fund will focus on commercial real estate loans and loan portfolios, including NPLs and REO assets from distressed owners in the United States and Europe. The underlying assets are expected to be diversified by property type and location. Additionally, the fund will originatefirst mortgages and mezzanine loans when attractive opportunities arise. A final close is expected for August 2014, and gross returns are expected to exceed 15 percent.

The fund’s predecessor, Colony Distressed Credit Fund II, closed in June 2