Bain Capital has confirmed the closure of more than $5 billion in fresh capital for its real estate division. The announcement includes the final results for Bain Capital Real Estate Fund III which reached $3.4 billion in total commitments. This figure represents a notable jump from the $3.2 billion raised for the firm’s second fund.

The total pool of investable capital was further increased by a $1.6 billion raise alongside 11North Partners. This specific portion of the capital is destined for an operating platform that focuses on necessity-based retail centres. Between the new fund and these co-investment projects, the firm has significantly increased its ability to buy assets at scale across its preferred sectors.

“We are grateful for the continued support of our limited partners and their conviction in our strategy and growing platform, which has delivered strong performance through one of the most challenging real estate cycles in decades,” said Ryan Cotton, Partner and Head of Bain Capital Real Estate. “Our thematic focus, underpinned by rigorous analysis and collaboration across Bain Capital’s platform, combined with disciplined selectivity and active management, positions us well to invest successfully across cycles. Looking ahead, we believe we are competitively advantaged to capitalize on long-term secular trends driven by changes in how people live, work, and spend, and we remain committed to building enduring partnerships with investors and operators who share our long-term view.”

Fund III will target value-add properties in sectors that are often difficult for investors to access. These include urban industrial spaces, medical outpatient buildings, and digital real estate assets. The team also plans to invest in for-rent townhomes, senior housing, and leisure facilities like marinas.

Bain Capital employees and alumni contributed $300 million to the new fund. The firm stated this investment highlights their commitment to staying aligned with their limited partners. The real estate team has recently expanded its internal functions to include dedicated units for debt capital markets and investor relations.

Recent activity from the group shows the breadth of their current strategy. They have recently purchased a portfolio of retail centres in Florida anchored by Publix and a 122,000 square-foot medical facility in the Washington metropolitan area. Other deals include the Boathouse Marine Center in Pompano Beach and various industrial properties in Northern New Jersey.