GreenOak Real Estate has held a first close on its debut US fund, raising approximately $150 million in commitments.
The firm, co-founded by former Morgan Stanley Real Estate Investing executives Sonny Kalsi, John Carrafiell and Fred Schmidt in 2010, is targeting between $300 million and $400 million for the vehicle, according to people familiar with the matter. GreenOak declined to comment.
GreenOak also is in the process of raising a commingled fund targeting Japan, with a first close expected on that vehicle in the coming weeks, sources told PERE for the April issue of the magazine. PERE previously reported that the firm is targeting $500 million in equity for the seven-year Japan fund and is looking to achieve net returns of 15 percent and equity multiples between 1.5x and 2x. One large LP said in March that he was an admirer of GreenOak’s Japanese proposition: “I have reviewed the proposed investment strategy and I like it. They would be an obvious start for our Japanese investment.”
GreenOak joins Apollo Global Management’s real estate arm, Apollo Global Real Estate, in holding a first close on its debut US fund. That firm recently revealed in SEC filings that AGRE US Real Estate Fund had held a first close in January on $307.9 million of commitments.
Targeting $650 million in equity, the Apollo vehicle combines commingled, discretionary capital alongside co-investment equity where the discretion remains with the LP, people familiar with the matter said. LPs which commit more than $50 million to the fund can also allocate additional co-investment capital to the vehicle. No fees are paid on uninvested co-investment capital, with LPs also able to opt in and out of those co-investment transactions, although full discretion remains with the GP in the general fund. Of the $307.9 million raised so far, $200 million is targeting co-investment opportunities, according to the SEC filing.