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Benson Elliot back in fundraising mode

The London-based private equity real estate firm led by Marc Mogull is hoping to raise €600m from investors with a strategy that sees it ‘sticking to our knitting.’

Benson Elliot Capital Management, the London-based private equity real estate firm led by Marc Mogull, has hit the fundraising trail again.

According to a note circulated by the firm, and obtained by PERE, it plans to raise €600 million for Benson Elliot Real Estate Partners Fund IV, the latest in its line of real estate opportunity funds.

A first closing is anticipated in November and could account for up to 50 percent of the targeted total. It is expected to comprise mainly re-upping investors.

Benson Eliot said it was past 80 percent committed for its current fund, Benson Elliot Real Estate Partners III. Typically, after a general partner of a fund passes a predetermined point in its fund’s investment period, it is permitted to fundraise again. Benson Eliot raised Partners III in February 2009, closing on €510 million and is expected to be totally committed within the next three months.

“We’re keeping Fund IV ‘right-sized’ so we can continue to operate within our niche” Benson Eliot said in the note, describing that niche as the “mid-market, property-by-property, value-add space.”

“We’ll continue to leverage our market knowledge and operational capabilities to create the value and drive the exits that will generate attractive risk-adjusted net returns for our limited partners,” the firm said, adding it was “sticking to our knitting.” The firm said it was targeting investments that capitalize on Europe’s on-going restructuring, market dislocations and structural inefficiencies. 

Benson Elliot is able to show prospective investors Partners III current performance, which it said in its note was forecasting an approximately 23.7 percent IRR and a 2x equity multiple, very much in keeping with what is expected of an opportunistic real estate fund. 

The firm declined to comment.