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Private equity firm Cottonwood Group has raised $1 billion for its new investment platform dubbed Cottonwood Real Estate Special Situations Strategy. The fund, officially closed on August 31, exceeded its original fundraising goal. It will focus on sectors such as industrial, data centers, apartments and mixed-use projects.

The strategy focuses on identifying opportunities in real estate credit and event-driven equities, while still maintaining flexibility to invest across asset types.

Last month, Jeffrey Horowitz, Cottonwood Group’s CFO, chatted with Commercial Property Executive about changes in the strategies of foreign investors, who are shifting toward reliability and quality and favoring income-generating assets over speculative growth plays. This change is driving capital toward multifamily and industrial properties, where returns depend on consistent growth in net operating income rather than rising yields.