Chicago Investment Firm Raises $1.2 Billion for Real Estate Fund

Mesirow Financial Inc. raised more than $1.2 billion for its fifth real estate fund, which will focus on apartment complexes in major US metros, the company said.

The Chicago-based company, whose real estate arm has $8.5 billion in assets under management, will target discounted multifamily assets in the top 25 to 30 American cities, Mesirow said in a statement on Monday. It will seek to purchase assets in fast-growing markets where “barriers to entry reduce the risk of oversupply.”

Investors have flocked to multifamily housing in recent years as high interest rates have boosted demand for rentals. At the same ...