EXCLUSIVE: Revcap hits £225m hard cap on fund III

The London-based private equity real estate firm has already invested about 20 percent of Kitty Hawk Capital Partners III across Europe.

Revcap Advisors has closed its third opportunistic fund on its £225 million (€304 million; $346 million) hard cap, PERE has learnt.

The London-based private equity real estate manager was targeting £200 million for Kitty Hawk Capital Partners III, according to a source close to the matter.

The fund, which targets real estate co-investment opportunities in smaller market transactions, often below the typical minimum investment size of the larger opportunity funds in partnership with local operating partners, has already invested about 20 percent of the capital in transactions in the UK, Swede, France and Germany.

The fund will invest alongside the local operating partners who typically co-invest between 10 and 25 percent of the required equity. The fund will have a two year investment period and will target an 18 percent IRR net to investors.

Revcap’s successful fundraise follows on from the firm’s Kitty Hawk Capital Partners II which had a final close in April 2013 at £150 million. Fund II is fully invested in around 40 transactions and has already started to make some realizations.

The London-based firm was established in 2004 by former Lehman Brothers bankers Andrew Pettit, William Killick, François Guiraud and Stefan Lanefelt, plus former Catalyst Capital partner Stephen Pettit and Nick West formerly of DTZ.