Stauffenberg Capital has launched its debut private equity real estate fund – a fund of funds – targeting $250 million for distressed opportunities globally, but excluding the US.
Investment decisions for the fund will be made by Cleveland-based real estate advisor, The Townsend Group. A first close of $40 million is expected towards the end of the year, according to Stauffenberg principal, Damian Von Stauffenberg.
Stauffenberg said the fund, Stauffenberg Capital Townsend Real Estate Global, which is targeting opportunistic-type returns, would focus on investments in secondaries as well as funds concentrating on distressed situations, such as real estate refinancing and land bank acquisitions. It will target institutional investors outside the US.
A former real estate business development director at Citigroup with responsibility for Europe and the Middle East, Stauffenberg helped launch Sentinel Real Estate Corporation’s first private equity real estate fund, the Gotham City Residential Fund, earlier this year on $235 million. The fund invests in rent regulated apartments in the greater New York City area.
Stauffenberg told PERE: “There will be some big opportunities worldwide thanks to the current market conditions. People will understand afterwards what an amazing opportunity this was, but fund managers have to be preparing to invest now. Private equity real estate funds have to have a clear strategy because no-one has any idea as to how long opportunity will last.”
The Stauffenberg fund is expecting to allocate 40 percent of its capital to European and Asian strategies, with the remaining 20 percent focused on Latin America funds.
In May, Radnor, Pennsylvania-based fund of funds Penn Square closed its first real estate outing, Penn Square Global Real Estate Fund I, on $231 million, after originally targeting $100 million. Townsend is making investment decisions for the fund.
Penn Square co-founder Gui Costin said at the time the fund had already invested in 14 private equity real estate funds, including funds targeting China, India, Brazil, Mexico and parts of Europe including Central and Eastern Europe.