Hearthstone Investments has launched a new residential fund targeting an initial close of £70m.
The fund will follow the same investment strategy of Hearthstone’s Residential Fund 1, which closed in 2019 with secured equity commitments of more than £200m, and Hearthstone Residential Fund 2, which closed in 2021 and raised £152m.
The new fund has a semi open-ended ‘evergreen’ structure, with opportunities for investors to top-up their holdings or to reduce exposure if their needs change.
Andrew Smith, chief investment officer of Hearthstone Investments, said: “The launch of Hearthstone Residential Fund provides institutional investors with another valuable opportunity to benefit from the same highly successful strategy of our previous funds. Not only will income be protected and enhanced through active asset management, important ESG criteria will be embedded into the investment process which centres around raising the standards of homes available to residents in the UK’s private rental market.
“Hearthstone’s 10-year track record of investing in and managing a portfolio of over 1,800 homes nationally will ensure that the fund benefits from the strongest possible experience and expertise available in today’s private rental sector.”
