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ottonwood Group has closed a $1 billion U.S. Real Estate Special Situations fund, beating its original target and finishing the final draw on 31 August 2025. The capital comes from both pooled vehicles and separate accounts, marking a major milestone for the firm that operates out of Boston, Los Angeles and New York.

    Founder and CEO Alexander Shing thanked investors for their confidence, noting that the fund’s design lets Cottonwood stay nimble across market cycles, deploy capital across the full stack, and generate value through complex development and restructuring deals.

    The strategy targets credit and event‑driven equity opportunities in high‑growth U.S. markets. Its initial portfolio includes industrial logistics warehouses, data centers, multifamily apartment communities and mixed‑use projects. Each deal is built with robust downside protection, and many also offer equity upside, underscoring Cottonwood’s focus on risk‑adjusted returns. “Prioritizing risk mitigation has consistently delivered strong results in both debt and equity, even in volatile conditions,” Shing said.

    Raising $1 billion in today’s low‑fundraising climate—private‑equity real‑estate fundraising is at a decade‑low—highlights renewed appetite for opportunistic, flexible strategies that exploit market dislocations, distressed assets and transitional projects.

    Since its 2012 founding, Cottonwood has managed over $7 billion in gross assets for institutional investors, pension funds and family offices worldwide. The firm operates a vertically integrated platform that covers origination, asset management, development, construction, portfolio management and capital markets, ensuring end‑to‑end expertise in every investment.