Bridges Ventures, the London-based impact investor, has held a £168 million ($220 million; €200 million) first close on its fourth property fund just three months after launching the vehicle.
Bridges has not yet disclosed the target fund size for Property Alternatives Fund IV.
The firm said the rapid capital raise was due to strong investor interest, particularly among local authority pension plans which have invested as a combined pool for the first time.
Bridges' previous vehicle, Fund III, closed last summer after attracting more than £212 million, above its original £200 million target. Among the primary local authority pension funds to have invested were Greater Manchester, Merseyside and South Yorkshire. The fund is almost fully invested, with capital deployed in 14 transactions since launching in 2013.
The firm said the new fund will follow the same strategy of investing in niche sectors – such as healthcare, education, and affordable residential accommodation – as well as emerging locations with a focus on environmental refurbishment and operational improvement.
“The fact that we were able to invest our previous fund in a relatively short period shows that our impact focus and strong network of specialist partners continues to give us a competitive advantage in sourcing attractive off-market deals – often where other investors are not looking – where we can bring our proven asset management and operational improvement skills to bear,” said Simon Ringer, partner and head of property funds at Bridges Venture.
“We expect Fund IV to be a case of 'more of the same' – ensuring that we can continue to deliver positive and measurable financial impact alongside strong financial returns.”