Alcion exceeds $400m fundraising target for second RE fund

Alcion Ventures has closed its second real estate fund, according to an announcement from the Boston-based private equity real estate firm.

Launched in 2008, Alcion Real Estate Fund II was closed on nearly $500 million of equity commitments, surpassing its initial target of $400 million. The firm received its commitments from a mix of pension funds, endowments, foundations, family offices and high net worth individuals from the US, Canada and Europe. HFF Securities served as the exclusive placement agent to Alcion Real Estate Fund II.

Fund II will be used to pursue distressed equity and debt opportunities within select major metropolitan markets in the US and Canada coming as a result of market corrections and a lack of available liquidity. To date, the fund has committed roughly 20 percent of its capital to product types including office, retail, apartments and land.

Founding partner Martin Zieff told PERE: “In Fund I we were surrounded by momentum players, so we did a lot of creative development deals. With this fund, we're doing predominantly existing income-oriented deals. We're doing middle-market deals, not participating in auctions.”  Zieff added that the firm would seek opportunities in Boston, Chicago, Los Angeles, Washington DC, San Francisco and Toronto. 

The firm received its commitments from a mix of pension funds, endowments, foundations, family offices and individuals of high net worth from the US, Canada and Europe. HFF Securities served as the exclusive placement agent to Alcion Real Estate Fund II. It aims to generate a typical opportunistic return of about 20 percent for its investors. For more on Alcion, see the July/August issue of PERE.