Harbert Fund Management has launched its sixth fund, a source close to the firm told PERE.
The Birmingham, Alabama-based alternative investment manager is targeting $500 million for Harbert United States Real Estate Fund VI, exceeding the series’ fifth vehicle equity, which raised $407 million in 2014 and is now almost fully invested.
The firm is targeting a 15 percent to 17 percent return for the sixth fund by investing across property types. Harbert usually invests outside of gateway areas in Class A and B properties for repositioning in markets with above-average job growth and economic diversification. Its investment size ranges from $20 mil¬lion to $80 million, and the firm often partners with local operators.
Harbert’s fifth US fund closed in June 2014 after surpassing its hard cap. The capital raised from approximately 25 commitments came from of a mix of existing and new investors, including endowments, foundations and pension plans from across the US and Europe. Approximately $50 million in equity came from high-net-worth individuals, while Harbert employees and affiliates committed just over $25 million in capital, according to PERE.
The firm has raised €230 million for its fourth European fund, which is in the market with an equity goal of €600 million. Harbert European Real Estate Fund IV has a target return in the mid-to-high teens. The firm plans to deploy capital from this fund to value-added and opportu¬nistic investments in office, retail and industrial properties in Western and Central Europe.
Harbert, founded by Raymond Harbert in 1993, managed about $4 billion of assets, includ¬ing $1.7 billion of real estate, as of November 30. The firm also invests in private equity, debt and power.
The firm has not yet employed a placement agent for this fund.