Meadow Partners has held a first close on just over $300 million in equity commitments for its latest real estate opportunity fund, according to a source familiar with the matter. Officials at Meadow declined to comment to PERE.
Meadow Real Estate Fund III has a target of $400 million, with a $500 million hard cap. Through the offering, the New York-based real estate investment manager will continue the same investment strategy it employed for Fund II— focusing on opportunistic purchases of income-producing properties in New York and London. Fund III is targeting office, retail and apartment deals in the $10 million to $30 million range and has the ability to invest in hotels as well. In addition, Meadow may invest up to 20 percent of the capital raised in two new markets: Paris and Washington DC.
PERE understands that all of the equity brought in for Fund III’s first closing came from existing investors in Fund II, and Meadow will now begin marketing the fund to new investors. Fund II, which launched in July 2012, raised a total of $320 million in equity from US pensions and endowments like the North Carolina Retirement System and the University of Texas Investment Management, according to data from PERE’s Research and Analytics team. Fund II wrapped up its investment period just last week.
Meadow’s first vehicle, Meadow Partners Real Estate Fund, was a part of Hawkeye Partners’ Scout Fund I, which closed in 2008 on $700 million in commitments from such investors as the California State Teachers' Retirement System, the Canada Pension Plan Investment Board, North Carolina State Treasury and Pennsylvania State Employees' Retirement System.
Meadow was launched by former Westbrook Partners executives Jeffrey Kaplan, Andrew McDaniel and Timothy Yantz in 2009. At Westbrook, Kaplan served as a managing principal and co-chairman of the investment committee, McDaniel served as director of the London office and Yantz served as director of the San Francisco office.