US-based, real estate-focused venture capital firm Fifth Wall closed a $100m fund on Wednesday that includes several property developers as limited partners.
Commercial real estate provider Cushman & Wakefield is an LP, as are real estate investment trusts Macerich, Acadia Realty Trust and Nuveen Real Estate, the latter a subsidiary of asset manager TIAA Investments.
Fifth Wall invests in property technology developers and is supported by a network of some 50 corporate backers. The new vehicle, Retail Fund, will concentrate on retail startups that can make use of its connections with its partners to facilitate their expansion through brick-and-mortar stores.
The fund is intended to support a retail startup sector that is increasingly made up of online-first consumer brands that build up an extensive online operation before diversifying into brick-and-mortar stores or showrooms.
In addition to capital, portfolio companies will be able to receive strategic advice covering areas such as the selection of retail sites, store design, staffing and merchandising. Retail Fund is being led by Fifth Wall partner Kevin Campos.
Cushman & Wakefield’s chairman and CEO, Brett White, said: “Our partnership with Fifth Wall helps us support some of the most promising, up-and-coming brands as they expand their focus from exclusively online retail to brick-and-mortar stores.
“We look forward to continuing our collaboration, leveraging our global platform and expertise to help the next generation of retailers deliver an innovative customer experience.”
Fifth Wall launched in 2017 with a $212m fund backed by Macerich and several other property services-focused corporates. Macerich and Cushman & Wakefield were among the LPs for its second fund, which closed at $503m in July 2019.
Retail Fund has already invested in 10 companies: workspace provider Industrious, hair colouring brand Madison Reed, Allbirds, Carbon38, Cotopaxi, Foxtrot, Heyday, Interior Define, Taft and Untuckit, the firm said.
