Fir Tree raises $628m

The New York-based company said it had raised $628m for its Real Estate Opportunity Fund II, exceeding its original target of $500m.

Fir Tree Partners has managed to break through its target fundraise for its latest opportunity fund, notching $628 million of commitments.

The company announced that the total fundraise for its Real Estate Opportunity Fund II exceeded the original target, set at $500 million. The fund has a broad remit as it is able to invest anywhere in the capital structure of an investment and is planning to invest in both commercial and residential property.

The firm has made short work of putting the fund’s capital out, stating in the announcement that it is already 90 percent invested in a variety of loans, real assets and securities.

New York-based Fir Tree, which was established in 1994, singled out last year as particularly good for finding “compelling opportunities” to restructure real estate companies. This year the firm has been more focused on acquiring defaulted first mortgages.  

Jarret Cohen, head of private real estate, said buying defaulted first mortgages was an attractive way to “craft a historically cheap basis in assets we'd like to own”.

James Walker III, a managing partner at Fir Tree and co-founder of the firm's real estate funds, stated: “The volatile capital markets continue to change the opportunity set.”

Fir Tree’s first fund was raised in 2008 and attracted $400 million of commitments.