Walton Street raises $1.52b for second real estate debt fund

Walton Street Capital has closed its second dedicated value-added/core-plus real estate debt fund, Walton Street Real Estate Debt II, and its related parallel funds (WSRED II).

WSRED II received total capital commitments of $1.52 billion, surpassing its target of $1.25 billion. The fund received commitments from a diverse base of investors including U.S. and non-U.S. government pension funds, corporate pension funds, sovereign wealth funds, banks and insurance companies, endowments and foundations, family offices, and high-net-worth investors.

The light transitional debt strategy focuses on the origination and structuring of floating-rate debt investments secured by income-generating assets in major U.S. markets.  WSRED II represents a continuation of predecessor WSRED I, which totaled $654 million in capital commitments.

“At this point in the cycle, Walton Street shares the view with its investment partners that value-added/core-plus debt offers superior cas