The largest fund to close during Q3 2009 was Dune Real Estate Fund II. Dune Capital Management raised $800 million for the fund, which targets investments in direct property and operating companies. The majority of the fund’s capital is focused on the US, with 15-25% allocated to Western Europe. Another notable US focused fund to close was the $700 million Broadway Real Estate Fund III, a value added fund that invests in class A and high-quality class B office properties in select US markets. Targeted regions include Boston, Northern and Southern California, New York City and the Washington DC area.
The largest Asia and Rest of World focused fund to close was Secured Capital Japan Real Estate Partners IV, which raised $525 million to make opportunistic investments in Japan. It may also invest up to 30% of its capital in China and capital cities in other Asian countries. The largest European fund was CapMan Real Estate’s Capman Hotels RE, a core-plus fund that received €332.5 million in equity commitments to invest in hotels in Scandinavia.
The fifth largest fund to close was a real estate fund of funds, Partners Group Global Real Estate 2008, which raised €275 million. The fund aims to build a diversified global portfolio of primarily value added and opportunistic real estate funds.
Please click here for more information and statistics on private equity real estate fundraising in Q3 2009.