HDG Mansur is embarking on a major fund raising program with the launch of two international vehicles aiming to attract at least $550 million (€373 million) in equity.
The firm, which has offices in London, New York, Indianapolis and Dubai, revealed it is hoping to raise $350 million for HDG Mansur's Opportunity Fund I, which is being established to capitalize on deteriorating market conditions in the US. At the same time, it is targeting equity commitments of $200 million for the HDG Mansur International Property Fund for investing in both the US and parts of Europe.
Harold Garrison, chairman and chief executive of HDG Mansur, said in a statement the firm had made the decision to raise the funds after watching the market over the past year. “These funds address both ends of the investment risk spectrum providing investors with choice and diversification.”
The firm's open-ended US vehicle is looking at high growth markets located in certain areas, such as the Southeastern and Southwestern parts of the country in the expectation they will see rapid growth as the economy recovers. It is targeting high-net-worth individuals and institutions.
The International Property Fund, by way of contrast, plans to invest in a diversified portfolio of properties across the US and Europe, including in the UK, Germany, the Netherlands, France, Switzerland and Nordic countries. The closed-end income fund will be targeted at high-net-worth individuals and institutions as well.
The firm views this vehicle as being similar to the $2 billion HSBC Amanah Global Properties Income Fund launched in 2002 by investing in single and multi tenant properties leased to major corporations with stable or improving credit. Its HSBC Amanah Global Properties Income Fund is the world's largest Shariah-compliant fund.
Private equity real estate firms have been quickly raising money to take advantage of distress in the US. Colony Capital closed its distressed real estate debt fund on $900 million of commitments this month after spending just one month fundraising,. The Colony Distressed Credit Fund will target debt and distressed real estate companies. Washington-based Perseus Realty Partners is also targeting distressed developers in the US with its debt financing vehicle, PRP Participating Loan Program.