Davis Closes Fifth Real Estate Fund Raising $977.1 Million

The Davis Companies has announced that it has expanded its capital base by more than $977.1 million amid the industry’s most challenging fundraising cycle in more than a decade. Davis has raised $877.1 million into Davis Investment Ventures Fund V, in addition to a co-investment sidecar vehicle totaling $100 million, to capitalize on market dislocations across multiple asset classes, with an emphasis on its three core investment verticals of multifamily, science and technology, and industrial and self-storage. In addition to Massachusetts and Rhode Island, early Fund V investments include assets in Florida, New York, and Virginia.

“At an historically difficult time to raise private real estate capital, the success marked by the final closing of Fund V, our largest to date, represents strong investor endorsement of our vertically integrated developer/operator platform,” said Stephen Davis, President of Davis. “We have a nearly 50-year track record of unlocking superior investment opportunities which are not widely recognized by the market, particularly at times of disruption and uncertainty. We owe our success to the extraordinarily talented team of investment, development and management professionals who comprise our organization, wielding both a sophisticated understanding of our assets and the relentlessness that it takes to unlock their value.”

Since entering the fund management business at the height of the Global Financial Crisis in 2009, Davis has invested heavily in building a deep and experienced bench of talent, cultivated its expertise in innovation markets such as greater Boston, exhibited broad investment acumen throughout the United States and across asset classes and strategies, and proven with sustained consistency that it can successfully invest across cycles. Davis has now raised approximately $3 billion combined across its value-add fund series platform.

“There is significant distress in the current market, and we intend to be nimble and opportunistic where we see a mismatch between pricing and risk,” said Quentin Reynolds, Chief Investment Officer at Davis. “We will be exploring investments across our target asset classes, with a focus on markets driven by intellectual capital, innovation, and population flows, and we will act decisively when we identify opportunity to deliver maximum value for our investors.”

Investors in Fund V include major pension funds, university and other institutional endowments, foundations, single family offices, high and ultra-high net worth investors and an offshore sovereign wealth fund.

Park Madison Partners served as Davis’ exclusive U.S. institutional placement agent.

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