Lennar closes Rialto Capital's first fund with $300 million in equity

Lennar announced, “its Rialto Capital subsidiary has completed the first closing of a real estate investment fund with initial equity commitments of approximately $300 million (including $75 million committed by Lennar). The Fund’s objective during its three-year investment period is to invest in distressed real estate assets and other related investments that fit within the Fund’s investment parameters.” Rialto landed a $3.05 billion FDIC portfolio, and a $740 million pool of loans from large banks to generate value, “one asset at a time.” Since new-home sales volume may not approach normalcy until well into 2012, Lennar’s Rialto plan is a masterstroke.

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