GCM Grosvenor-backed Matter reaches first close on Fund II

London-based Matter, which launched the capital raise in H2 2022, has already gathered more capital for the vehicle than for its first fund.

Matter Real Estate, a London-based real estate manager, has held a first close for its second fund, Matter Real Estate Fund II, getting almost halfway to its target, PERE has learned.

The firm has raised £120 million ($137.7 million; €139.5 million), market sources told PERE. Matter is targeting £300 million for the fundraise, which kicked off in the second half of this year.

The firm will target investments in Northern Europe, with a focus on the UK, Ireland, the Nordics, Belgium, Netherlands, Luxembourg and Germany. The property focus will be on residential and healthcare properties, similar to Matter Real Estate Fund I.

Matter has already raised more for this fund than its predecessor, which closed in Q4 2020 on £100 million.

Around 40 percent of the capital raised so far is from new investors to the fund, PERE understands. Most investors from Fund I returned to Fund II but upsized their prior commitments, sources said.

GCM Grosvenor is a backer of the firm, having purchased an ownership stake in one of Matter’s single-family rental portfolio companies, Placefirst, earlier this year. GCM is also an investor in the second fund, having committed £25 million, sources confirmed.

The two parties are also partnering on the fund’s first investment. Matter has committed £25 million to acquire a retirement living portfolio in the UK alongside a £25 million co-investment from GCM, PERE understands. The deal represents the former’s debut investment in the senior housing space.

The firm will continue to target primarily single-family rental properties via its second fund. Matter has an established UK presence in the UK via platforms such as Placefirst, and in Ireland, through a development company called Dwellings.

Matter was founded by David Christie in 2021 after he left ESO Capital, where he was the head of real estate. Christie has also held positions at Ares Management and CarVal Investors, another London-based manager.