Catalyst Capital has closed its first institutional third party private equity real estate fund in Europe with commitments of €230 million.
The London-based firm will run its existing asset management business at the same time as deploying equity from the new Catalyst European Property Fund. Park Hill Real Estate Group acted as placing agent for the fund while Nabarro provided Catalyst Capital with legal advice.
It is the first time that Catalyst has raised money from third party investors for investment in Europe. The firm is aiming to provide its investors with an internal rate of return of about 20 percent and an equity multiple of two times.
The strategy for its new vehicle, which is to run for eight years, is to pick off opportunistic deals in Western and Central parts of the region.
Investors in the fund are from both Europe and North America.
Peter Kasch, managing partner, said: “Our efforts are now concentrating on identifying acquisition opportunities where we can add value during a recovery period in the markets, particularly in established prime markets. Investment is now focused on cash flow and (the market) is as attractive as we have seen in twenty years.”
Catalyst was formed 13 years ago. It is run by chairman Julian Newiss and managing director Peter Kasch from offices in London, Paris, Frankfurt, Milan and Warsaw. It also invests in India through the Catalyst Samsara India Opportunity Fund, a fund it jointly managed with Mumbai-based Samsara Capital.