Mesa West targets $750m for fourth debt fund

An investor that previously committed to the second and third funds will not participate in the new vehicle.

Mesa West Capital is looking to raise $750 million for the Mesa West Real Estate Income Fund IV, its latest debt fund, Private Debt Investor has learned.

The third fund launched in 2013 and closed at $752.45 million, passing its $650 million target. It had a targeted net return of 12 percent for the third fund. Investors in the third fund included Texas Permanent School Fund, Los Angeles City Employees Retirement System (LACERS), Hawaii Employees’ Retirement System and the San Diego City Employees’ Retirement System. Most of those were returning LPs from the second fund, according to PDI Research & Analytics. 

LACERS committed about $25 million to the third fund, but will not be investing in the fourth fund, PDI has learned. LACERS declined to comment on why it would not be committing to the new vehicle.

Mesa West declined to comment on the fundraising.

The fund’s strategy is to originate loans to acquire and recapitalize commercial real estate. Mesa West is focused on originating first mortgages for acquisition, refinancing and recapitalization of commercial real estate assets.

Last week, Mesa West Capital announced the opening of its third office in Chicago with Matthew Snyder at the helm. Mesa West has provided financing worth $350 million in the region in the last six months, according to the company website. Snyder recently joined from Wells Fargo Capital Markets Group.

Mesa West has raised about $1.57 billion for the first three real estate income funds since 2005. Mesa West Capital, which manages $3.2 billion in assets, launched the first fund of this series in the first quarter of 2005.

*This story was updated on 29 June to reflect that Mesa West declined to comment on the fundraising, in line with firm policy and SEC regulations and that LACERS  declined to comment.