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Private Equity Real Estate Funds in Market Being Raised by First-Time Fund Managers - September 2012

by John Mather

  • 04 Sep 2012
  • RE

Preqin Investor Network currently tracks 497 private equity real estate funds raising capital globally. Of these 497 vehicles, 161 are being raised by first-time fund managers, with an aggregate target size of over $33bn. Approximately 7% of these first-time funds are targeting commitments of between $500mn and $1bn. Sixty-five percent of these 161 vehicles have not yet reached a first close, while 25% have reached a first close, 7% a second close, and 3% a third close or more.

In terms of targeted capital, three of the largest private equity real estate funds on the road being raised by a first-time manager include GI Partners’ Datacore Fund, Cushman & Wakefield Investors’ The Pan-European Urban Retail Fund, and Avingstone’s The Avingstone Fund.

GI Partners’ Datacore Fund, which employs a core strategy, is currently seeking $1bn and has yet to reach a first close since its launch in 2012. Its investments will focus on data centres within the US. Cushman & Wakefield launched The Pan-European Urban Retail Fund in 2011, which focuses on retail investments in France, Germany, Sweden, and the UK. Employing a core-plus strategy, it held a first close of €100mn in May 2011 and has a target size of €500mn. Avingstone’s The Avingstone Fund also has a target size of €500mn and was launched in 2009; in September 2009 it reached a first close of €350mn. The vehicle has a distressed strategy and a primary focus on hotel investments in Europe.

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