EXCLUSIVE: CarVal closes $350m maiden Europe fund

The fund is the Minneapolis-based alternative investment manager’s first vehicle dedicated solely to Europe and is targeting opportunistic deals in the UK and France.

CarVal Investors, the Minneapolis-based alternative investment manager, has held a $350 million final close on a Europe-focused opportunistic fund.

CVI Europe Real Estate Partners, the firm’s first investment vehicle exclusively dedicated to European real estate, will invest across the office, retail, industrial and residential sectors in France and the UK.

The fund will be managed by senior managing director and head of European real estate, Robert Balick, who is based in CarVal Investors’ London office in Soho.

“We remain extremely positive about the compelling opportunity to acquire real estate assets essentially below replacement costs, with clear asset management plans to enhance value and institutional liquidity,” said Balick.

Despite being the first vehicle dedicated solely to European real estate CarVal has an 18 year track record in the region, said Balick. The track record was built from deals in the firm’s CVI Global Value Funds as well as in a managed account for Minnesota conglomerate Cargill prior to that.

Previous deals include Moorgate Exchange, in the City of London which the firm acquired alongside BlackRock and Quadrant Estates which was sold to Brookfield Property Partners at the end of last year. The firm also teamed up with Orion and Quadrant Estates to develop 100 Cheapside in a joint venture with City of London Corporation back in 2012.

Lazard & Co acted as placement agent for the fundraising and Akin Gump Strauss Haeur & Feld provided legal counsel.