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EXCLUSIVE: GreenOak closes on $756m for US Fund II

GreenOak Real Estate closed fundraising for its second US fund on Tuesday with a total of $756 million of capital commitments, PERE has learned.

The private equity real estate firm led by former Morgan Stanley Real Estate Investing (MSREI) triumvirate Sonny Kalsi, John Carrafiell and Fred Schmidt, has closed its second US fund since setting up in 2010.

The firm, which has offices in New York, London and Tokyo, closed GreenOak US Fund II on $756 million of capital commitments on Tuesday this week, PERE understands. It has already invested more than $100 million of additional coinvestment capital making a total of $870 million raised, with one third put to work. 

The success means GreenOak has raised more than 40 percent more equity for the seven-year vehicle than it originally had targeted when it commenced fundraising last year and also means it has raised more than $2 billion for funds, side cars and accounts since Kalsi, Carrafiell and Schmidt launched GreenOak in the wake of their respective departures from MSREI after the global financial crisis.

The second US fund’s strategy is in keeping with that of Fund I, which saw GreenOak deploy capital into gateway cities, particular into New York where its US office is based. That fund is targeting IRRs of between 15 percent and 18 percent and but is understood to be greatly exceeding that range. Similarly, Fund II is believed to have the same target.

As reported, GreenOak also is understood to be on target to achieve a similar level of performance for its Japan fund, which was closed last year and is now completely deployed. GreenOak plans to corral another $500 million from investors. However, in a difference to the firm’s US effort, for this second fund GreenOak is expected to expand its investment activities to include some investments in other Asian gateway cities, possibly including Seoul. For that fund, Hodes Weill & Associates has been appointed as placement agent.

Helping GreenOak raise the capital was placement agents Park Madison Partners in the US and Anthony Biddulph’s CAPRA Global Partners in Europe.

GreenOak declined to comment.