Cottonwood receives $1b in commitments for real estate special situations investment strategy

Manhattan, NY Cottonwood Group (Cottonwood), a private equity real estate investment firm with offices in Los Angeles, Boston and New York, has exceeded its original fundraising goal for the Cottonwood Real Estate Special Situations Strategy. The strategy reached the milestone of $1 billion at final closing on August 31, 2025. Commitments received is comprised of pooled-fund vehicles and separate accounts.

“We are extremely appreciative of the trust and support received from our U.S. and global institutional investors, allowing us to reach this important milestone during a period where private equity real estate fundraise is at a decade low,” said Cottonwood founder and CEO Alexander Shing. “This underscores the confidence of our investors in Cottonwood’s investment platform that allows us to remain agile during market cycles, invest across the full capital stack, and execute complex development or restructuring when required to unlock value.”

The strategy primarily focuses on real estate credit and event-driven equities opportunities, while maintaining flexibility across all property types. The diversified initial portfolio at final closing includes industrial logistics warehouses, data centers, multifamily apartments, and mixed-use developments across high-growth U.S. markets. Each investment is strategically structured for downside protection, with select deals offering equity upside potential.

“By prioritizing risk mitigation and downside protection, Cottonwood has consistently optimized returns across its debt and equity investments — even in volatile market conditions,” said Shing.