Town Lane Management raises $1.9 billion for second real estate fund

Town Lane Management, a real estate investment firm founded by former Blackstone executive Tyler Henritze, has closed its second fund at $1.9 billion. The amount exceeds the firm's initial fundraising target by more than 25%.

Commitments to the fund were provided by US-based institutional investors, including pension funds, endowments, foundations, and family offices. The firm intends to deploy between $50 million and $300 million per investment, focusing on sectors such as senior housing, retail, and industrial properties.

This fundraising follows the firm's first vehicle, which raised $1.25 billion. Henritze, who co-founded the firm with Parker Morse, noted that the lack of legacy office holdings provides a competitive advantage as the broader commercial real estate market faces challenges from high interest rates and declining office demand. The firm has also expanded into digital infrastructure through a joint venture with PowerHouse Data Centers to develop a facility in North Carolina.