Los Angeles-based private equity real estate firm Richard Ellis has exceed its capital raising target for its Asia fund of funds, the CBRE Asia Alpha Plus Fund.
The firm, whose global multi-manager division is led by managing director Jeremy Plummer from its London office, had aimed to raise $200 million for the vehicle at the time of its first closing last summer.
But with growing confidence in the fundraising markets in general combined with more enthusiasm from institutional investors towards Asia, the firm has managed a final closing of $269 million.
The fund has commitments from 10 institutional investors from the UK, Finland, Ireland and the Netherlands.
The vehicle invests primarily in “specialist funds with pre-identified asset portfolios, including secondaries, club deals and selective new fund investments in the Asia Pacific region”, CBRE Investors said in an announcement today. The firm added that 40 percent had already been committed to five underlying funds.
Adrian Baker, director at CBRE Investors’ Singapore office, spoke to PERE ahead of the closing on the Asia fund of funds market in general. He said that European investors in particular were more keen to commit to Asian strategies than to European counterparts currently.
He said: “They want exposure to growth economies and Asia’s are the only ones left. They previously had the choice of Central and Eastern Europe but this is less of an option today.”
This view was echoed in this month’s issue of PERE magazine, in which Jon Lekander, head of Aberdeen Property Investors’ multi-manager business, told PERE: “There are now more capital sources to approach and fundamentally investors are favouring Asia than markets in the West.”
Aberdeen is poised to start fundraising on its third Asia fund of funds, targeting total equity of $600 million.