Rialto Capital, a wholly owned subsidiary of homebuilder Lennar Corp. (LEN), closed on its first real estate investment fund Monday. The fund is worth about $300 million in initial equity, $75 million of which is committed by Lennar. Miami-based Lennar said the fund accommodates a three-year investment period that will specifically target distressed real estate assets. It declined to identify the other investors in the fund. Lennar has a long history of investing in distressed properties, most recently the acquisition of $740 million in distressed commercial properties. The portfolio included 306 properties and 397 loans, most of which were nonperforming. In February, Rialto acquired 40% of a distressed portfolio worth $3.05 billion from the Federal Deposit Insurance Corp. This deal boosted Lennar's third-quarter earnings which exceeded analysts' expectations at $30 million. Rialto earned $7.7 million for the third quarter. Write to Christine Ricciardi. Disclosure: The author holds no relevant investments.