- Global real estate industry VC firm Fifth Wall announced it closed $503 million for the oversubscribed Fund II
Fifth Wall — the largest VC firm focused on technologies for the global real estate industry (property technology also known as “proptech”) founded by managing partners Brendan Wallace and Brad Greiwe — announced it closed its second real estate technology fund. The oversubscribed $503 million Fund II more than doubled the size of Fifth Wall’s initial fund — which closed in May 2017 at $212 million.
Fifth Wall raised the $503 million for the Fund II from the largest and most influential owners, operators, and developers of real estate globally. These investors represent the most sought-after customers and partners for entrepreneurs and startups into which Fifth Wall invests. And by aggregating so many real estate owners into a single fund, Fifth Wall’s unique investment model helps large real estate corporations access the most innovative new technologies that can transform their businesses.
The first fund was raised from 9 strategic real estate investors in the US only. Fund II attracted strong global investor interest from over 50 corporate strategic investors from 11 countries — which brings the firm’s total assets under management to more than $1 billion.
Some of the investors participating in Fund II include Gecina in France, MERLIN Properties in Spain, British Land and SEGRO in the UK, Kenedix and Mitsubishi Estate in Japan, Keppel Corporation in Singapore, and many in the United States, such as CBRE, Cushman & Wakefield, D.R. Horton, Equity Residential, Essent, Hines, Host Hotels & Resorts, Hudson Pacific Properties, Lennar, Macerich, Marriott International, MetLife Investment Management, News Corp, PulteGroup, Starwood Capital, Related Companies, and Toll Brothers.
“As the real estate and technology industries increasingly converge, Fifth Wall has become central to that convergence, fostering a level of strategic collaboration that has never before characterized the real estate industry,” said Fifth Wall co-founder and managing partner Brendan Wallace. “Fifth Wall sees powerful network effects in our unique fund model as it becomes a centralized platform for the world’s largest real estate companies to share insights and access new technologies to enhance their businesses. For our entrepreneurs, Fifth Wall efficiently opens distribution channels for their products to more than 50 corporate strategic investors globally and we have dedicated a team to support the success of those partnerships and integrations.”
“We’re committed to identifying and partnering with organizations that can help us develop the next generation of technology solutions for our clients, our colleagues, and the built environment,” added Brett White — the Executive Chairman and CEO of Cushman & Wakefield. “We believe we’ve found a great partner and advisor in Fifth Wall, and together, we can help put Cushman & Wakefield’s clients at the center of some of the most innovative technology solutions in our industry.”
Fifth Wall’s Fund II is now considered the largest active venture capital fund in the LA area and the firm has grown from 8 employees at the time of its initial fund close in May 2017 to more than 30 employees now.
“Los Angeles is an economic capital — a place where businesses put down roots and quickly become very successful,” explained Mayor Eric Garcetti. “Companies like Fifth Wall have powered our economy to new heights, and their successful launch of a new fund is the latest reminder that businesses in Los Angeles don’t just mark history — they make history.”
Some of Fifth Wall’s investments include companies like b8ta, Blend, ClassPass, Clutter, Loggi, Opendoor, Lime, Hippo, VTS, and Industrious.
“We’re constantly looking for new real estate services and technologies to improve the way we develop and manage our residential and commercial properties in France,” commented Méka Brunel — the CEO of Gecina. “We partnered with Fifth Wall to help us anticipate what’s ahead, and connect us with ideal partners and technologies so we can deliver the best solutions for our customers.”
