Davis Raises $1B for Largest Real Estate Fund

101 Smith Place in Cambridge’s Alewife neighborhood. Image courtesy The Davis Cos.

Lifting a page from its strategy during the global financial crisis in 2009, The Davis Cos. has raised nearly $1 billion to invest in real estate including distressed assets.

The Boston-based developer closed on its latest and largest real estate fund, raising $877.1 million for its Davis Investment Ventures Fund V along with a $100 million co-investment.

Chief Investment Officer Quentin Reynolds said the company plans to invest in geographic markets driven by intellectual capital, innovation and population growth.

“There is significant distress in the current market, and we intend to be nimble and opportunistic where we see a mismatch between pricing and risk,” Reynolds said in a statement.

The fund already has invested in properties in Massachusetts, Rhode Island, New York, Florida and Virginia.

Davis Cos. previously raised $777.5 million in 2020 for its Davis Investment Ventures Fund IV for investments in the life science, multifamily and industrial asset categories. Davis entered the real estate fund business in 2009 and closed on its Davis Investment Ventures Value Opportunity Fund I in 2010 after raising $229 million.

“We have a nearly 50-year track record of unlocking superior investment opportunities which are not widely recognized by the market, particularly at times of disruption and uncertainty,” President Stephen Davis said in a statement.

Davis currently has a 15.2 million-square-foot real estate portfolio. The firm’s largest local development opportunity is the 100-acre former ExxonMobil fuel storage facility in Everett, acquired last year for $72.5 million.

Private equity fundraising declined 10 percent from the previous year to $176.7 billion in the first quarter, Private Equity International reported.