Nordic-Focused Private Equity Real Estate Fund Managers

by Jonathan Ma

  • 30 Sep 2011
  • RE

There are currently 26 private real estate fund managers actively managing funds solely targeting the Nordic region. Sweden is the location of the highest number of these fund managers, with eight firms headquartered in the country. There are seven GPs based in Finland, four in the UK, three in Denmark and two each in both the US and Norway.

Nordic-focused fund capital has been raised for a range of investment strategies: 35% of all capital raised for Nordic focused funds From 2008 to September 2011 is targeting core-plus investments. 33% is targeting value added strategies, while the remaining 32% of capital raised was for opportunistic investments.

Property preferences of Nordic-focused real estate fund managers are diverse. Office and retail properties are targeted equally by fund managers with 65% of fund managers investing in these property types. 50% of fund managers target logistics properties, 42% show a preference towards residential properties, 35% exhibit a preference towards warehouse/distribution properties and 27% of fund managers target hotels.

Since the pre-crisis boom period of 2007, fundraising activity for Nordic-focused funds has declined. In the period January to September 2011, just two funds closed, raising an aggregate €0.4bn. This was in contrast to 2007 when 10 funds raised an aggregate of €2.1bn. Six funds reached a final close in 2009, raising €0.8mn, with four funds raising €0.3bn in 2010. There are seven funds currently on the road, targeting an aggregate €2.1bn from investors.

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