Knight Frank holds first close on debut fund

The investment management arm of property services firm Knight Frank has raised more than £300 million to date for the open-ended vehicle.

Knight Frank Investment Management (KFIM), the property investment division of property services firm Knight Frank, has reached a first close on its debut fund.

The London-based firm was able to collect north of £300 million (€395 million; $432 million) for an open-ended vehicle targeting UK real estate. The equity was provided by pension fund clients of Willis Towers Watson.

“Launching our first fund is an important step in the ongoing development of the KFIM business and, coming so soon after passing £1 billion of assets under management, continues the underlying momentum within the business,” said Kevin Aitchison, chief executive of KFIM.

The vehicle is targeting long-term income returns by focusing on well-let assets with strong underlying property fundamentals across the UK.

“The success of the launch is testament to a lot of hard work by the KFIM team and we have already identified a good pipeline of potential opportunities; the focus will now be on ensuring that we invest the money as quickly and as efficiently as possible,” said Aitchison.

Matthew McDonald was recruited from CBRE Global Investors last year to be the fund manager of the new vehicle.