Gaw holds $250m first close for US fund

The Hong Kong-based firm launched the vehicle in the second quarter with a $350m target.

Gaw Capital Partners has corralled $250 million for its latest US-focused fund, PERE has learned.

The Hong Kong-based firm declined to comment. PERE understands the firm launched Gaw Capital US Value Add Fund II, also known as US Fund III, in the second quarter and held the first close for the vehicle in early November. The 10 investors in the first round of commitments included high-net-worth investors, pension funds and endowments.

Gaw has a $350 million target and a $400 million hard-cap for US Fund III. The firm is planning a final close in the first half of 2018.

Gaw closed its predecessor vehicle on $315 million in October 2015 after just over a year in the market, PERE previously reported. In June, the firm said it had finished investing capital from the fund with the purchase of the Oakland Marriott City Center in California for $143 million.

Gaw is continuing the same investment strategy from Fund II, focusing on creative office and hospitality in growing, highly-educated cities. To date, Fund III’s capital has been deployed in west coast hotel and office investments, with an average equity check of $25 million.

For the latest vehicle, Gaw is targeting a net internal rate of return of 14-17 percent. Fund II is on track to generate a net 16 percent IRR, while Fund I, which is almost fully exited, has returned 28 percent. US Fund I, rather than a traditional commingled fund, is a club vehicle that raised $110 million in 2012.

For Fund III, the firm is pursuing similar investor types to those that committed to its previous US vehicles. About half the investors in US Fund II are Asian and the other half are American, including pension funds, high-net-worth individuals and endowments. San Francisco Employees’ Retirement System and Ohio Bureau of Workers’ Compensation each earmarked $50 million for US Fund II, according to PERE data.

Gaw has not used a placement agent for the fund series.

Founded in 2005, the firm has over $13 billion of assets under management, according to its website.