Summary:
Fifth Wall is raising a $500 million fund called Fifth Wall React.
The firm manages $3.2 billion in capital, including an $866 million fund from 2022.
They also launched a $500 million fund focused on real estate climate tech.
The U.S. Federal Reserve's decision to lower rates has brought optimism for the proptech sector.
Notable exits include investments in Opendoor, Hippo Insurance, and SmartRent.
Fifth Wall's Ambitious New Fund
Real estate venture firm Fifth Wall is set to raise a new $500 million fund known as Fifth Wall React, as revealed in a recent regulatory filing.
Founded just eight years ago, Fifth Wall is under the leadership of co-founder and CEO Brendan Wallace. The firm has successfully managed $3.2 billion in capital, including a record-breaking $866 million fund raised in late 2022, which was the largest venture fund dedicated to real estate tech startups. Earlier in 2022, they also closed a $500 million fund focused on investing in real estate climate tech aimed at decarbonizing the property industry.
Market Context
The significance of this new fund cannot be understated, especially in light of the challenges faced by the proptech sector following rising interest rates in 2022. However, the recent decision by the U.S. Federal Reserve to lower rates has sparked optimism among investors for a potential rebound in the market.
Notable Exits
Fifth Wall has seen some impressive exits, including investments in the home seller Opendoor, property insurance company Hippo Insurance, and smart home technology firm SmartRent. Despite inquiries, Fifth Wall has not provided comments regarding their new fund.
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