GTIS Partners is set for a busy fundraising year. The firm, which launched its second US residential real estate fund earlier this year, now is expected to bring its third Brazil-focused vehicle, GTIS Brazil Real Estate Fund III, to market, according to sources familiar with the matter. GTIS officials declined to comment.
The new fund would be the successor to GTIS Brazil Real Estate Fund II, for which the firm raised a total of $810.2 million in equity plus $93 million in co-investment capital. Fund II, whose investment period closes at year's end, is said to be 60 percent deployed. However, GTIS is anticipated to close on a couple of large transactions that would account for the remaining uncommitted capital in the fund.
PERE understands that a target for the new fund has not yet been determined, but it likely will be similar or larger in size than that of Fund II. And while GTIS has not begun officially marketing Fund III, the Illinois Municipal Retirement Fund already has earmarked up to $75 million to the new vehicle, according to a press release last month. The commitment was part of a more than $200 million allocation made to international real estate funds last month.
Fund III is expected pursue a different strategy than Fund II, through which GTIS currently is developing and redeveloping office, hotel, industrial and residential properties in Brazil, both directly and with local operating partners. By contrast, the firm will be more heavily focused on distress with its new fund and will seek to take over troubled development projects or provide liquidity to distressed companies.
Fund III would be GTIS’ second new fundraising launch this year. Last month, PERE reported that the firm was in the market with its second US residential vehicle, for which it was targeting $750 million. The news came just six months after GTIS closed on $716 million for GTIS US Residential Strategies Fund, including $527 million through the fund and $189 million through related co-investment vehicles. GTIS US Residential Fund now is said to be 84 percent committed.