With over $1 billion assets under management and more than 50 corporate strategic investors spanning 11 countries, Fifth Wall has assembled the largest consortium of real estate owners to invest in cutting edge startups and transform the global real estate industry.
On July 17, 2019, Fifth Wall, the largest venture capital firm focused on technologies for the global real estate industry (property technology or “proptech”), announced the close of 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 $503 million for its 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 the entrepreneurs and startups into which Fifth Wall invests. 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.
Fifth Wall’s first fund was raised from nine strategic real estate investors in the US only; Fund II attracted strong global investor interest from over 50 corporate strategic investors from 11 countries, bringing the firm’s total assets under management to over $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, including CBRE, Cushman & Wakefield, D.R. Horton, Equity Residential, Essent, Hines, Host Hotels & Resorts, Hudson Pacific Properties, Lennar, Macerich, Marriott International, MetLifeInvestment 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 Brendan Wallace, Co-Founder & Managing Partner at Fifth Wall. “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,” said Brett White, Executive Chairman & Chief Executive Officer, 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 the largest active venture capital fund in the Los Angeles area and the firm has grown from eight employees at the time of its initial fund close in May 2017 to more than 30 employees today.
“Los Angeles is an economic capital — a place where businesses put down roots and quickly become very successful,” said 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.”
Fifth Wall has built a nine-person strategic consulting team dedicated to helping its real estate investors address the strategic and operational challenges of new technology adoption and to help structure partnerships, integrations, contracts, and distribution deals. The team works closely with its corporate strategic investors to support Fifth Wall’s investments in companies like 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,” said Meka Brunel, Chief Executive Officer, 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.”
Source: PRNewswire, Los Angeles, July 17, 2019