Calmwater Capital Completes Final $636 Million Closing on Third Fund

National lender has already invested in 44 loans from the fund to date

LOS ANGELES--()--Calmwater Capital (Calmwater), a leading national direct commercial real estate lender, today announced the final closing of its third fund, U.S. Real Estate Credit Fund III, L.P., with $636 million in total commitments. The fund’s investors include endowments, pension funds and family offices, based in North America, Asia, Europe and South America.

“We are pleased with the high quality of limited partners who have placed their support with us, and we are highly committed to the success of our partnership,” said David Traversi, president of Calmwater.

Similar to its two highly successful prior funds, Calmwater is focusing the fund on originating $5 million to $50 million senior loans for fundamentally sound assets, but where the financing requires a sense of urgency or complexity and the potential to earn superior risk-adjusted returns.

“Sophisticated borrowers pay premiums for our expediency in addition to our expertise and flexibility to underwrite complexities for transitional assets. By seeking premium returns and making quick decisions, we remain highly focused on downside protection and adhere to institutional processes established and refined since 2010,” said Traversi.

Underscoring the strength of the fund, Calmwater has already generated a robust national pipeline and invested in 44 loans from it, all senior liens with a substantial equity cushion.

“Our ability to move quickly and deal with complexity has earned the firm a reputation as a ‘go-to-lender’ for our targeted lower middle-market bridge loans – a relatively inefficient and deep segment of the market,” said Larry Grantham, founder and senior portfolio manager of Calmwater.

San Francisco-based Probitas Partners acted as the placement agent for the fund.

“We believe that Calmwater’s strategy and execution are differentiated and compelling and that Calmwater has established its franchise as a leading player in the space, supported by high-quality institutional investors. We are very pleased to have partnered with Calmwater and congratulate them on their success,” said Jane Harris, Director of Probitas Partners.

About Calmwater Capital

Calmwater Asset Management, LLC is the Manager for U.S. Real Estate Credit Fund III, L.P and a Registered Investment Advisor. Calmwater Capital is a leading, nationwide direct real estate lender that delivers certainty of execution, flexibility and speed to borrowers. Since 2010, the team has originated and funded 138 loans, totaling over $1.6 billion in capital committed (as of September 30, 2017). Specializing in $5 million to $50 million senior and mezzanine bridge loans that fall outside the capabilities of traditional lenders, Calmwater has originated commercial real estate loans throughout the United States in the office, industrial, retail, multifamily, hospitality and special-use sectors.

For more information, please visit www.calmwatercapital.com.

About Probitas Partners

Probitas Partners, founded in 2001, is a leading global placement advisory firm with offices in San Francisco, New York, London, and Hong Kong. Probitas partners with leading managers of alternative investment products seeking to raise capital from sophisticated institutional investors. Since its inception, Probitas has advised and raised 85 funds, totaling over $64 billion in commitments from 500+ institutional investors globally.

For more information, please visit www.probitaspartners.com.

For all non-media enquiries, please contact:

Calmwater Asset Management, LLC
11755 Wilshire Boulevard, Suite 1425
Los Angeles, CA 90025
Tel: (310) 806-9770
Attention: David Traversi, dtraversi@calmwatercapital.com

Probitas Funds Group, LLC
425 California Street, Suite 2300
San Francisco, CA 94104
Tel: (415) 402-0700
Attention: Jane Harris, jlh@probitaspartners.com

Contacts

The Hoyt Organization
Kent Barrett, kbarrett@hoytorg.com
Melissa Strom, mstrom@hoytorg.com
(310) 373-0103

Release Summary

Calmwater Capital, a leading national direct commercial real estate lender, today announced the final closing of its third fund.

Contacts

The Hoyt Organization
Kent Barrett, kbarrett@hoytorg.com
Melissa Strom, mstrom@hoytorg.com
(310) 373-0103