FIFTH WALL CLOSES OUT STRONG 2023; PROMOTING 10 OF ITS TEAM MEMBERS AND ADDING 14 NEW COMPANIES TO ITS PORTFOLIO

Rhea-AI Summary

Fifth Wall, the largest asset manager focused on improving, future-proofing, and decarbonizing the built world, closed an additional $340M into its climate strategy, promoted 10 team members, added 14 new portfolio companies, and now has more than 110 strategic Limited Partners across 20 countries. The company also announced its second annual Climate Summit, aiming to reduce the industry's carbon footprint. Fifth Wall has received commitments from major real estate companies and has completed investments in more than 30 Climate Tech companies, including Electric Hydrogen and Ascend Elements. The company has been a core voice at leading industry conferences and forums, emphasizing its commitment to decarbonizing real estate.

Positive

• Fifth Wall closed an additional $340M into its climate strategy on top of the $500M raised into its inaugural Climate Fund
• Promoted 10 team members and added 14 new portfolio companies
• More than 110 strategic Limited Partners across 20 countries
• Received commitments from major real estate companies and completed investments in more than 30 Climate Tech companies
• Participated in leading industry conferences and forums, emphasizing its commitment to decarbonizing real estate

Negative

• None.

Insights

Financial Analyst

The infusion of an additional $340M into Fifth Wall's climate strategy, on top of the previously raised $500M, signifies a robust investor confidence in the firm's approach to climate-related investments within the real estate sector. This substantial capital allocation is likely to accelerate the adoption of sustainable technologies, potentially leading to long-term cost savings and operational efficiencies for property owners and managers. The firm's focus on decarbonizing the built environment, which accounts for a significant portion of global greenhouse gas emissions, aligns with broader ESG investment trends that are increasingly influencing market dynamics and investor preferences.

Moreover, the firm's expansion, including the promotion of team members and the addition of new portfolio companies, suggests a strategic scaling of operations which may enhance its competitive position in the PropTech and Climate Tech sectors. The mention of Fifth Wall's investments in 20 PropTech unicorns underscores the firm's track record of identifying high-growth opportunities, which could be indicative of strong future performance and potential upside for investors. However, as with any investment in emerging technologies and startups, there are inherent risks including market adoption, technological obsolescence and regulatory challenges that must be considered.

Market Research Analyst

Fifth Wall's announcement highlights the growing momentum in the PropTech and Climate Tech sectors. The firm's portfolio now includes over 145 companies, showcasing the diverse range of solutions being developed to address real estate efficiency and sustainability. This expansion reflects a larger market trend where technology is increasingly intersecting with traditional industries to drive innovation and address pressing global challenges such as climate change.

Real estate technology, particularly solutions that contribute to decarbonization, is becoming integral to the industry's transformation. The firm's role in leading conferences and engaging with policymakers indicates its influence and thought leadership within the space. Such active involvement not only contributes to shaping industry discourse but also positions the firm as a key player in driving the adoption of sustainable practices. This thought leadership, combined with the firm's strategic investments, could create ripple effects throughout the industry, potentially setting new standards for sustainability and efficiency in real estate operations.

Environmental Policy Expert

The strategic investments by Fifth Wall into Climate Tech companies are particularly significant in light of the real estate industry's substantial carbon footprint. By channeling capital into companies that offer innovative solutions for reducing greenhouse gas emissions, Fifth Wall is not only capitalizing on a growing investment niche but also contributing to the global effort to combat climate change. The firm's investments in leading Climate Tech financing rounds demonstrate its commitment to supporting high-impact initiatives.

Participation in climate forums and hosting events like the Climate Summit are indicative of Fifth Wall's role in fostering dialogue and collaboration among stakeholders. These actions are crucial for establishing a shared vision and coordinated strategies to achieve net-zero emissions in the real estate sector by 2050. The firm's engagement with policymakers and industry leaders suggests an integrated approach to addressing environmental challenges, which is essential for the development and implementation of effective climate policies within the industry.

—The Firm also announced its second annual Climate Summit—

NEW YORK, Jan. 30, 2024 /PRNewswire/ -- Fifth Wall—the largest asset manager focused on improving, future-proofing, and decarbonizing the built world—announced that at the end of 2023, the Firm closed an additional $340M into its climate strategy on top of the $500M raised into its inaugural Climate Fund. Additionally, the Firm promoted 10 of its team members and added 14 new portfolio companies. Fifth Wall now has more than 110 strategic Limited Partners across 20 countries—approximately 300 investors worldwide—and in excess of 145 portfolio companies, maintaining its stance as the largest fund to invest globally in Built World Technology, including Property Technology (PropTech) and Climate Technology (Climate Tech).

"Fifth Wall helped define PropTech as an investment category and continues to meaningfully drive the sector's growth. Over the last twelve months, we have seen real estate stand at the critical precipice of a new transformation with a profound global impact – the decarbonization of the built world," said Brendan Wallace, CEO and CIO of Fifth Wall. "In 2024, as owners and operators continue to adopt tech, it'll become increasingly impossible to ignore the hardware and software that's decarbonizing the industry. PropTech will become an overarching, inclusive term not just for software for the industry, but for the tech that makes buildings more efficient. We are committed to helping our Limited Partners—representing the largest owner-operators of real estate globally—our Portfolio Companies, and the entire industry navigate this collision." 

PropTech Momentum
In early December 2022, Fifth Wall announced the closing of its $866M Real Estate Technology Fund III—one of the company's nine funds since inception—representing its initial hybrid fund, composed of both early- and late-stage vehicles. Fifth Wall now holds more than 110 PropTech portfolio companies, including Industrious, VERO, VTS, Neighbor, Bilt Rewards, Tailorbird, and WiredScore, amongst others. The Firm's initial real estate technology seed investments over the course of the last 12 months included Propexo, TrueBilt, TrunkTools, Construex, and TradeKnight. Since inception, Fifth Wall's been an investor in 20 PropTech unicorns—privately held companies that are valued at over a billion dollars—and rapidly growing. The Firm was a core voice at many of the industry's leading conferences including Inman Connect New York, BuiltWorlds Venture West, RETCON 2023, Blueprint, NMHC's OpTech, MIPIM Cannes and more.

"Whether it is how to leverage generative AI; navigate office to residential conversions; or lower carbon emissions, today's owner-operators are navigating uncharted territories when it comes to managing their assets," said Jeremy Fox, Partner on Partner Coverage. "Core to Fifth Wall's platform is our ability to thoughtfully and regularly listen to our network of Limited Partners' most critical pain points and seek out key tech solutions that will meaningfully solve for them."

Enhanced Commitment To Decarbonizing Real Estate
Fifth Wall announced that at the end of 2023, the Firm closed an additional $340M into its climate strategy on top of the $500M raised into its inaugural Climate Fund. To-date, Fifth Wall has received commitments from American Homes 4 Rent, BBVA, British Land, Camden Property Trust, CBRE, Cosan, The Durst Organization, Equity Residential, Hilton, Host Hotels & Resorts, MGM Resorts, Kimco Realty Corporation, Hudson Pacific Properties, Invitation Homes, Ivanhoé Cambridge, NZ Super Fund, Lineage Ventures, UDR, and many others. Aimed at dramatically reducing the industry's carbon footprint, responsible for approximately 40% of total greenhouse gases, Fifth Wall's Climate Strategy has completed investments in more than 30 Climate Tech companies. These industry-defining entrepreneurs include Brimstone, Loop, Mill, RoadRunner, Mojave, nZero, Runwise, EV Realty, and others. Fifth Wall also invested in the year's two largest Climate Tech financing rounds, Electric Hydrogen's $380M Series C & Ascend Elements' $542M Series D. The Firm was also an integral voice at numerous Climate forums including hosting a fireside chat with the Department of Energy's Chief Investment Officer, Christopher Creed during Climate Week NYC and participating in Hack Summit, UN General Assembly, SXSW, RE+, Verge, Deploy23, COP28, IMN's ESG & Decarbonizing Real Estate Forum, and many others.

Fifth Wall Climate Summit Returns In 2024
In September 2023, Fifth Wall launched its Climate Summit at Blueprint in Las Vegas, marking the first conference that is squarely focused on real estate's astronomical CO2 emissions. The event brought together the leading real estate owners and operators, climate entrepreneurs, thought-leaders in the energy sector and integral policymakers to discuss the path towards reducing the global real estate industry's carbon footprint to achieve net-zero by 2050. Some of the notable speakers included CNBC's Diana Olick, Axios' Alan Neuhauser, Canary Media's Julian Spector, The Department of Energy's Elizabeth Bellis Wolfe, The General Services Administration's Jetta Wong, EQR's Rebecca Becker, MGM's Michael Gulich, Hudson Pacific Properties' Natalie Teear, SOLARCYCLE's Suvi Sharma, Source's Cody Friesen, and Cyclic Materials' Ahmad Ghahreman, among others. The core content covered integral topics ranging from circular economy, EV revolution, incentives and regulations, public sector ongoing action, navigating ESG, unlocking sustainable real estate's potential, the climate crisis, real estate's reckoning, to the way forward; and much more. Fifth Wall's 2024 Climate Summit will be held on September 17th, 2024 at 12pm to 5pm PST at The Venetian in Las Vegas.

For more information—such as registration & agenda updates—visit fwclimatesummit.com.

Notable Promotions
Fifth Wall's team of nearly 70 professionals across its five offices in New York City, Los Angeles, San Francisco, London, and Singapore — represents some of the most talented executives in their respective focus areas from Investment and Platform to Partner Coverage. Fifth Wall is proud to congratulate the following team member on their key 2024 promotions →

• Tommy Wesely, Chief Marketing Officer & Head of Platform
• Virginia Drennen, Principal, Go-To-Market
• Mackenzie Chisholm, Vice President, Strategy & Platform
• William Smiles, Vice President, Strategy & Platform
• Ethan Goldberg, Vice President, Partner Coverage
• Michael Foell, Vice President, Tax & Accounting
• Alec Morgan, Vice President, Investing
• Anthony Perasso, Director, Social Media & Platform Development
• Josh Melnyk, Associate, Investing
• Nolan Fearon, Associate, Partner Coverage

SPAC 
In August 2023, Fifth Wall Acquisition Corp. III (NASDAQ: FWAC)—a special purpose acquisition company (SPAC) sponsored by a Fifth Wall affiliate—announced the completion of its business combination with Mobile Infrastructure Corporation, the only publicly listed exclusive owner of parking assets. This marks the Fifth Wall affiliate's second SPAC, following FWAA, which had completed a merger with the Fifth Wall portfolio company SmartRent—the category-leading smart home operating system for residential property owner-operators, homebuilders, homebuyers, and residents—in 2021. Between these two SPACs, the Fifth Wall affiliate raised $620M. 

About Fifth Wall
Founded within 2016, Fifth Wall, a Certified B. Corp, is the largest asset manager focused on improving, future-proofing and decarbonizing the built world. With approximately $3B in commitments and capital under management, Fifth Wall is backed by a global mix of more than 110 strategic limited partners from more than twenty countries, including BNP Paribas Real Estate, British Land, CBRE, Cushman & Wakefield, Hilton, Hines, Host Hotels and Resorts, Kimco Realty Corporation, Lennar, Marriott International, MetLife Investment Management, MGM Resorts, Related Companies, Starwood Capital, Toll Brothers, and others. This consortium represents one of the largest groups of potential partners in the global built world ecosystem, resulting in transformational investments and collaboration with portfolio companies to cut emissions, improve efficiency, and maximize returns. Founded in Los Angeles and headquartered in New York, Fifth Wall's other offices include San Francisco, London & Singapore. For more about Fifth Wall, its LPs, and portfolio, visit www.fifthwall.com.

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SOURCE Fifth Wall

FAQ

What is the amount raised by Fifth Wall into its climate strategy?

Fifth Wall raised an additional $340M into its climate strategy on top of the $500M raised into its inaugural Climate Fund.

How many team members were promoted by Fifth Wall?

Fifth Wall promoted 10 team members.

How many new portfolio companies were added by Fifth Wall?

Fifth Wall added 14 new portfolio companies.

How many strategic Limited Partners does Fifth Wall have?

Fifth Wall has more than 110 strategic Limited Partners across 20 countries.

How many Climate Tech companies has Fifth Wall invested in?

Fifth Wall has completed investments in more than 30 Climate Tech companies.