Key Takeaways
- • TPG Real Estate has raised roughly $5B through a fund and related vehicles for hard-to-acquire properties, according to CoStar News, marking its fifth opportunistic real estate fund.
- • ACORE Capital secured $1.1B in commitments for its second opportunistic credit fund, exceeding its $1B target and raising more than four times its predecessor fund.
- • Combined, the two managers have raised more than $6B to target commercial real estate stress tied to loan maturities.
- • Trepp data cited in the article shows nearly $800B of U.S. commercial property loans maturing before the end of 2026, with another $733B due in 2027.
- • TPG CEO Jon Winkelried said owners are increasingly forced to liquidate, with TPG seeing attractive cap rates and pricing well below replacement value.
Summary
TPG Real Estate, the real estate arm of Fort Worth, Texas- and San Francisco-based alternative asset manager TPG Inc., has raised roughly $5B through a fund and related vehicles, according to CoStar News. The raise targets hard-to-acquire properties whose owners are struggling. The firm described the fund as its fifth opportunistic real estate fund and part of a "significant fundraising cycle" for its real estate business.
New York-headquartered ACORE Capital announced Thursday that it had secured $1.1B in commitments for an opportunistic credit fund, exceeding its $1B target, according to a company press release. The fund is the firm's second such vehicle, following a first fund launched in 2020. ACORE CEO and co-founder Warren de Haan said in a statement that the fund raised more than four times its predecessor, which he cited as evidence of strong investor demand.
Both managers are positioning for a wave of refinancing pressure. According to Trepp, almost $800B of U.S. commercial property loans are due before the end of 2026, and another $733B are expected to come due the following year. TPG is betting that some owners will sell as lower asset values collide with high refinancing costs following interest rate hikes, creating openings for outside capital to take over assets.
During TPG's third-quarter earnings call, Winkelried said he sees "increasing capitulation" quarter by quarter from owners with large pools of real estate assets that need to liquidate. TPG has already acted on that thesis, acquiring a national portfolio of medical outpatient properties in an off-market deal in Q3. The firm had $13.7B available for real estate investments at quarter end and has invested almost $2B more through its real estate strategies year to date than in the same period last year.
de Haan framed ACORE's strategy around navigating market cycles and deploying capital with discipline, citing "significant dislocation across commercial real estate" as the opportunity set.
New York-headquartered ACORE Capital announced Thursday that it had secured $1.1B in commitments for an opportunistic credit fund, exceeding its $1B target, according to a company press release. The fund is the firm's second such vehicle, following a first fund launched in 2020. ACORE CEO and co-founder Warren de Haan said in a statement that the fund raised more than four times its predecessor, which he cited as evidence of strong investor demand.
Both managers are positioning for a wave of refinancing pressure. According to Trepp, almost $800B of U.S. commercial property loans are due before the end of 2026, and another $733B are expected to come due the following year. TPG is betting that some owners will sell as lower asset values collide with high refinancing costs following interest rate hikes, creating openings for outside capital to take over assets.
During TPG's third-quarter earnings call, Winkelried said he sees "increasing capitulation" quarter by quarter from owners with large pools of real estate assets that need to liquidate. TPG has already acted on that thesis, acquiring a national portfolio of medical outpatient properties in an off-market deal in Q3. The firm had $13.7B available for real estate investments at quarter end and has invested almost $2B more through its real estate strategies year to date than in the same period last year.
de Haan framed ACORE's strategy around navigating market cycles and deploying capital with discipline, citing "significant dislocation across commercial real estate" as the opportunity set.
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