Capital watch: Diversified debt strategies take hold

The largest fund closed in 2023 to date is Marathon Secured Private Strategies Fund III, which had $1.7bn raised.

Managers raising capital for North America-focused commercial real estate debt funds have closed 20 funds totaling $8.65 billion in the year through the end of August, with many of the vehicles following a diversified investment strategy, per Real Estate Capital USA data.

Eight of the 20 funds define their strategy as diversified across sector, with the remainder opting to target specific sectors, including multifamily, hotel or healthcare. 

Key fund closes include a $1.6 billion diversified strategy from Marathon Asset Management and a $1.6 billion multifamily-focused fund from Harbor Group International. Meanwhile, Mesa West Capital, CBRE Investment Management and Calmwater Capital also closed funds. 

Managers closed 10 funds totaling $5.8 billion during the first six months of 2023.