Mesa West Capital Secures $1.37 Billion For Fifth Value-Add Real Estate Debt Fund

By Amit Chowdhry ● Feb 18, 2023
  • Mesa West Capital announced it has secured $1.37 billion for its fifth value-add real estate debt fund. These are the details.

Mesa West Capital – a private U.S. real estate credit arm of Morgan Stanley Investment Management – announced it has raised about $1.37 billion for Mesa West Real Estate Income Fund V, L.P., exceeding Mesa West’s original $1 billion fundraising target for the Fund. Fund V is the latest and largest in Mesa West’s closed-end value-add series, which was established in 2005, and is the first successor vehicle raised by Mesa West since joining Morgan Stanley Investment Management. Passing the $900 million in commitments raised for Mesa West Real Estate Income Fund IV, L.P., Fund V’s investors include a sophisticated group of domestic and international public and private pension funds, insurance companies and individual investors.

Fund V has been established to originate, purchase and manage loans secured by value-add / transitional commercial real estate assets throughout the U.S., which has seen increased demand due to regulatory changes resulting from the Global Financial Crisis and the current volatility and dislocation in the capital and property markets. The fund will create a diversified portfolio of investments designed to produce current income and attractive risk-adjusted returns.


“We are extremely pleased with the continued support and trust from both our long-standing partners as well as new investors in Fund V. In today’s environment, sophisticated investors are increasing their allocations to real estate credit with managers who have been tested through market cycles. Mesa West’s successful track record through multiple cycles, including through the Global Financial Crisis, has been a differentiator for the platform in continuing to organically grow our business over time.”

— Jeff Friedman, Principal of Mesa West

“The strong investor demand for this Fund underscores our continued focus on providing best-in-class private and listed real assets solutions across multiple equity and credit strategies to meet our clients’ objectives. The successful Fund V capital raise builds on the strength of our growing Real Assets platform, which currently manages $62 billion in client assets.”

— John Klopp, Global Head of Real Assets for Morgan Stanley Investment Management