Menlo Equities has closed an infrastructure fund that will be focused partly on data centers.

The California-based private equity real estate investment firm this week announced the final closing of its latest value-add investment fund, Menlo Realty Partners VI (MRP VI). The fund was oversubscribed with equity capital commitments of $211 million, exceeding the initial fundraising target of $175 million.

MRP VI will primarily target office, R&D, data center, lab, and industrial properties.

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“We believe that the current economic environment will provide compelling acquisition opportunities for MRP VI. Our differentiated investment approach, reputation in the market, and demonstrated track record of generating attractive risk-adjusted returns led to strong investor demand for the fund,” said Rick Holmstrom, Founder and Managing Partner of Menlo Equities.

The company said the fund secured commitments from a broad range of limited partners that included family offices, wealth management firms, Registered Investment Advisors, and high-net-worth individuals. MRP VI is the largest value-add fund sponsored by Menlo Equities to date and has approximately $1 billion of acquisition capacity when including co-investment capital and leverage.

According to its portfolio page, Menlo currently owns 11 data centers across the US.

Last year the company sold a Cyxtera data center and Amazon warehouse in the Irvine area of Los Angeles, California to CBRE for $180 million. 2021 also saw the company acquire 10 Digital Realty data centers the colo giant had co-owned with PGIM Real Estate.

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