Bow River Capital, a Denver-based alternative asset manager, announced today the close of the Bow River Capital Real Estate Fund III. The Fund was oversubscribed with $450 million of commitments compared to its $350 million target and nearly 2.5 times larger than its $186 million predecessor fund, Bow
River Capital Real Estate Fund II.
Bow River Capital Real Estate Fund III invests primarily in light industrial and opportunistic residential in the Rocky Mountain West and Southwest, a geographic footprint that Bow River calls the “Rodeo Region.”
“Even before the pandemic, the Rodeo Region was seeing steady population and job growth as people migrated from the coastal cities,” said Nicholas Koncilja, managing director and co-head of Bow River Capital’s Real Estate team. “The pandemic increased both the migration trend and the investment opportunities in the Rodeo Region, an area where Bow River has invested for nearly two decades. We’re excited to put this fund to work investing in an area that we know so well that is seeing tremendous growth.”
The majority of the fund’s assets – approximately 50%-60% – will be invested in light industrial projects in the Rodeo Region.
“The Rodeo Region industrial sector is at an inflection point,” said Patrick Blasdell, managing director and co-head of Bow River Capital’s Real Estate team who leads the firm’s industrial vertical. “There is historically high demand – driven by a combination of increased e-commerce traffic and remarkable in migration – and a limited supply of modern, light industrial that’s required to meet tenant needs in cities like Boise and Salt Lake City. We look forward to helping bridge the gap.”
The Fund will also invest in opportunistic residential real estate, such as purpose-built single family for rent, multi-family housing, and senior housing.
“We are grateful to our existing investors and to the many new investors who have joined us in our third opportunistic real estate fund,” said Bow River Capital Founder and Chief Executive Officer Blair Richardson. “Our team’s experience and in-depth knowledge of the Rodeo Region are strong differentiators in sourcing investment opportunities and understanding these growing markets.”
