Vacasa raises $64M to boost domestic and international expansion

U.S.-based vacation rental management company Vacasa has closed $64 million in new funding from existing investor Riverwood Capital, with participation from other current investors Level Equity, NewSpring and Assurant Growth Investing.

Vacasa says the funding was initiated by its investors and not part of a proactive effort to seek new capital.

“We are increasingly bullish on Vacasa’s ability to capitalize on the $32 billion market opportunity that exists within the vacation rental industry,” says Jeff Parks, managing partner at Riverwood Capital.

“Vacasa has exceeded every key business metric since our first investment just over a year ago. Unit economics, customer retention, geographic footprint, homeowner and guest satisfaction, and both organic and acquisitive growth are on an accelerated trajectory.”

The funding comes two weeks after Vacasa announced it acquired assets from Oasis Collections, a home-share company that had been backed by and affiliated with Hyatt Hotels.

That move raised Vacasa’s total number of properties under management to more than 10,600 in 23 cities in the United States and 16 countries in Europe, South and Central America and Africa. It also puts Vacasa ahead of Wyndham Vacation Rentals as the largest vacation rental company in North America.

In July, the company launched Vacasa Real Estate, a network connecting buyers and sellers of vacation properties.

“Vacasa has consistently grown 60% year-over-year, but we’re still only 2% of the market” says Vacasa CEO and founder Eric Breon.

“We see this as an opportunity to strengthen our balance sheet while continuing to expand our geographic reach, adding new and unique programs, and investing in our technology platform.”

Founded in 2009, Vacasa took its first round of outside capital in 2016 - $40 million Series A led by Level Equity. One year ago, Vacasa secured a Series B round of $103.5 million.

The company will use this latest funding to expand the platform in the U.S. and internationally, to add staff and to develop its technology.