RockStep Fund I Now Open
Creating Compelling Risk-Adjusted Returns
RockStep Capital has been investing in retail commercial real estate since 1997 and is taking advantage of the dramatic repricing of assets due to higher interest rates through RockStep Fund I. This new fund will capitalize on Opportunistic and Core Plus strategies to provide strong returns for investors.
The dynamics of the current commercial real estate market have reduced the risk associated with retail and, from a relative value, have made retail the best sector for commercial real estate investment. Retail investment can provide the highest returns with the lowest risk when underwritten correctly. RockStep Capital has the experience and team to capitalize on these opportunities.
$250mm
Fund SIze
8%
Targeted Preferred Return
RockStep Fund I Key Factors:
- Fund Size: $250mm
- $1mm Minimum Investment
- Expected First Close: 4th Quarter 2023
- 3-Year Investment Period
- 7-Year Fund Life
- 1.5% Asset Management Fee
- 8% Preferred Return
- Manager Catch-Up
- Promote Split: 80/20
- Potential for Separate Account Investments
- Pari-passu for larger acquisitions
Targeted Expected Returns
Net Fund Weighted Average IRR: 15+%
- Opportunistic: 16%-20% IRR, 1.75-3.00x MOIC
- Core Plus: 12%-15% IRR, 1.5-1.75x MOIC
RockStep Capital Track Record:
Total net return to LP investors 39.2%
RockStep Fund I Objectives
- Create compelling risk-adjusted returns in the Opportunistic and Core Plus retail segments
- Utilize data collected through 26 years of building, acquiring, and operating retail to create asymmetric return profiles for all fund assets, which is the RockStep Capital Alpha
- Take advantage of capital market and capitalization volatility to create outsized returns while taking little risk
- Use institutional capital market experience to generate returns
- Utilize senior management retail and capital market experience to minimize risk through the acquisitions, operations, and disposition lifecycle