The wealth management house has wrapped up several funds, including those investing in what are called Qualified Opportunity Zones, and launched new offerings. Part of its strategy is around tapping into the booming logistics sector, fueled by the changing supply chain patterns caused by the pandemic.

Cresset Partners has closed its first industrial-focused fund, the Cresset Real Estate Logistics Fund I. Investors have committed more than $250 million over 12 months. The money has been used to develop nine warehouse facilities, tapping into the strong demand for logistics facilities in the US amid the disruptions caused by the pandemic.

The US firm has also launched its second industrial fund, Cresset Real Estate Logistics Fund II, which is now open to investors, the firm said in a statement earlier this week. 

The business also closed its second qualified opportunity zone fund, the $655 million Cresset-Diversified Qualified Opportunity Zone Fund II, alongside the launch of its third QOZ fund, called Cresset-Diversified Qualified Opportunity Zone Fund III.

Cresset’s first logistics fund was launched in April 2021, driven by rapid growth in demand for logistics real estate, fueled to some extent by the shift to home working and the impact of lockdowns to cope with the pandemic.

QOZ funds are designed to steer investment into areas suffering from poverty and other challenges. They were created following the Tax Cuts and Jobs Act in 2017, which allows investors to defer and cut tax burdens from recognized capital gains. Cresset launched its first vehicle in March 2018 and the second in March 2020. These two QOZ funds have raised more than $1.1 billion, developing 17 projects across the US. By putting money into certain projects that have a non-financial as well as a financial return, QOZs also in some ways dovetail with the enthusiasm for impact investing, now a familiar talking point among wealth managers. QOZs exist in all 50 states. (See a related example on these Zones here.)

Cresset Partners is one of two RIAs operating under the Cresset moniker: Cresset Asset Management, which provides investment advisory, family office, and other services to individuals, families, and institutional clients, and Cresset Partners, which gives investment advice to investment vehicles investing in private equity, real estate and other investment opportunities.