Cottonwood Group, a private equity real estate investment firm with offices in Los Angeles, Boston, and New York, has announced the final close of its Cottonwood Real Estate Special Situations Strategy, exceeding its original fundraising target and reaching $1 billion in total commitments as of August 31, 2025. The capital raised includes contributions from pooled-fund vehicles and separate accounts, reflecting strong investor confidence in the firm’s approach to opportunistic real estate investing.
The strategy is designed to be flexible across property types, with a primary focus on real estate credit and event-driven equity opportunities. Cottonwood’s initial portfolio includes a mix of industrial logistics warehouses, data centers, multifamily housing, and mixed-use developments located in high-growth markets across the United States. Each investment is structured to prioritize downside protection, while select deals offer potential for equity upside, balancing risk and return in a dynamic market environment.
Founded in 2012, Cottonwood Group has built a reputation as a trusted partner to global institutions, pension funds, and family offices. Over the past 13 years, the firm has invested, transacted, and advised on more than $7 billion in gross assets. Its portfolio spans a wide range of asset classes and geographies, supported by a vertically integrated platform that includes in-house capabilities in origination, investment execution, asset and risk management, development, construction, and capital markets.
KEY QUOTES:
“We are extremely appreciative of the trust and support received from our U.S. and global institutional investors, allowing us to reach this important milestone during a period where private equity real estate fundraise is at a decade low. This underscores the confidence of our investors in Cottonwood’s investment platform that allows us to remain agile during market cycles, invest across the full capital stack, and execute complex development or restructuring when required to unlock value.”
“By prioritizing risk mitigation and downside protection, Cottonwood has consistently optimized returns across its debt and equity investments—even in volatile market conditions.”
Cottonwood founder and CEO Alexander Shing
