Luxembourg-based funds of funds manager, ImmoFinRE, has held a final close on a global fund of funds garnering total capital commitments of €115 million, it announced today.
European high-net-worths from the Benelux region and France are the limited partners in ImmoFinRE II, which was launched in October 2010 following the full investment of its first fund. That vehicle attracted €80 million of commitments in June 2008.
Notably, the fund has made investments in nine underlying investment vehicles, all but one of which is targeting emerging economies. The firm said in a statement the fund had invested in funds targeting Brazil, Mexico, Colombia, Peru, Dominican Republic, Panama, China, Macau, India, Canada and Turkey.
ImmoFinRE’s strategy is to apportion more than 80 percent of equity commitments to developing and emerging markets and typically to small emerging managers. The fund is now more than 50 percent committed and ImmoFinRE has targeted for its limited partners an IRR for the fund of 14 percent net of fees and costs.
Spelling out the strategy further, ImmoFinRE said it had a preference for affordable housing projects as these directly benefit from the rapid rise of emerging middle classes and are promoted by most local governments.
Speaking about the fund close, Philippe Winssinger, who is president of the firm’s investment committee, said he was delighted that appetite remained among those investors willing to diversify their portfolio for assets across the globe and in particular, away from “over-leveraged and stagnating” economies.
Alberic Braas, chief executive, said: “In a world full of uncertainties, getting diversification in hard assets globally should be part of any investor’s strategy to reduce portfolio volatility while benefitting from the strong growth witnessed in emerging countries.”
ImmoFinRE Group was started in 2006.