Declaration Partners Seeks to Bolster US Property Investments Amid Downturn
Declaration Partners, an investment firm backed by David Rubenstein and other wealthy individuals, is looking to expand its US property investments amidst a downturn in the sector. The firm is seeking to raise approximately $400 million from wealthy individuals and family offices for its second real estate fund, focusing on areas such as multifamily housing and industrial properties.
Rubenstein, co-founder of Carlyle Group Inc., has already provided an anchor allocation for the fund, along with other investors from Declaration’s first US real estate fund. The firm has made strategic investments in Florida, North Carolina, Pittsburgh, and Chicago, including developments in self-storage facilities and residential properties.
With the US commercial property market experiencing challenges such as higher borrowing costs and sinking valuations, wealthy investors are eager to capitalize on opportunities presented by the market upheaval. Approximately $3.1 trillion of property assets have debt maturing through 2025, with a significant portion in the US.
Declaration Partners, founded in 2017 with an anchor investment from Rubenstein’s family office, has since expanded its team and investment portfolio. The firm, which also focuses on private equity and venture capital, has more than two-dozen staffers, with a dedicated real estate division led by Todd Rich, a former JBG Smith Properties executive.
Participant Capital, an advisory firm for family offices and institutional investors, is assisting Declaration in its fundraising efforts. The firm’s strategic approach to investing in distressed properties during the market downturn has attracted interest from high-net-worth individuals looking to capitalize on the market bottom.
As major players in the real estate industry, including Morgan Stanley and Evercore Inc., look to seize opportunities in the US property market, Declaration Partners is well-positioned to leverage its expertise and investor network to drive growth and success in its real estate investments.
