Builder Lennar Corp.’s Rialto Capital subsidiary has completed the first closing of its second real estate investment fund.
The fund is a distressed asset vehicle with initial equity commitments of about $260 million.
According to the company, the total equity commitments include $100 million committed by Lennar.
Lennar’s CEO Stuart Miller credited Rialto in the builder’s third-quarter earnings call with playing “a central part in the improving Lennar story.
“Rialto contributed $7.7 million of operating earnings, while the Rialto connections and relationships have continued to help grow and expand our core homebuilding business,” he said.
Lennar plans to release fourth-quarter earnings next month.