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EQT Exeter to target $2bn for fourth US core-plus logistics fund

The vehicle will follow the firm's fourth European value-add fund, which closed on its €2.1bn hard-cap earlier this month.

EQT Exeter is gearing up to launch its fourth US core-plus industrial fund with a target of $2 billion, PERE has learned.

The Philadelphia-based logistics specialist recently circulated a letter to existing investors notifying them about the upcoming fundraise for EQT Exeter Industrial Core-Plus Fund IV.

The vehicle would be the largest US core-plus logistics fund for the firm to date. The prior fund in the series, Exeter Core Industrial Fund III, closed on $1.3 billion in October 2019 and is in the middle of its three-year investment period. The firm is changing the naming format for the fourth fund to better reflect the core-plus risk-return profile of the series, PERE understands.

The vehicle represents the first US-focused capital raising campaign since Stockholm-based EQT acquired Philadelphia-based Exeter Property Group for $1.8 billion earlier this year. The newly merged firm already closed its biggest fund ever, Exeter Europe Logistics Value Fund IV, which hit its €2.1 billion hard-cap earlier this month, surpassing its target of €1.25 billion.

EELVF IV was significantly overcommitted, Ward Fitzgerald, partner and head of EQT Exeter, told PERE in a previous interview. An additional 25 percent of capital was turned away, with EQT Exeter in some cases directing investors to reduce their commitments while declining others outright.

A hard-cap for the firm’s latest US offering was not disclosed in the letter to investors, PERE understands. EQT Exeter declined to comment on the new fund.

Exeter’s US industrial core-plus series dates back to 2012 and targets both big-box and last-mile logistics warehouses in the country’s top 30 distribution markets. The company has raised $2.3 billion of equity for the platform.

An April performance report from the New York City Employees’ Retirement System shows that ECIF III has not registered an internal rate of return yet and has an equity multiple of 1.02x, though it is still early days for that vehicle. Exeter Core Industrial Club Fund II, which is fully invested, had an IRR of 14.2 percent and an equity multiple of 1.42x, according to the same report.