Morgan Creek’s Herczeg launches fund of funds business

The former director of real assets at the North Carolina-based multimanager is starting up a fund of funds platform for Chicago’s Oak Street Real Estate Capital.

Larissa Herczeg has joined Oak Street Real Estate Capital, a Chicago-based private equity real estate investment firm, as managing partner and chief investment officer of its newly launched fund of funds platform. She will oversee all aspects of the new business, including investment sourcing, due diligence, portfolio management and reporting.

The launch of the fund of funds platform marks a new milestone for Oak Street, which also manages commingled funds and separate accounts on behalf of institutional and high-net-worth investors, including public and corporate pension plans, insurance companies, family offices and trusts. Herczeg declined to comment.

Herczeg previously was director of real assets at Morgan Creek Capital Management, a Chapel Hill, North Carolina-based fund of funds manager where she was responsible for global real estate investing and spearheaded the firm’s real estate emerging manager programme. Before joining Morgan Creek in January 2010, Herczeg worked at Franklin Templeton Real Estate Advisors and the Credit Suisse Customized Fund Investment Group (CFIG), both of which also have real estate emerging manager initiatives.

At all three firms, she handled sourcing, due diligence and management of portfolios of direct and indirect real estate investments. Prior to CFIG, she was an associate in the corporate finance group at law firm Clifford Chance from 2000 to 2005.

Oak Street currently is raising its second value-add fund, Oak Street Real Estate Capital Fund II, and held a first close of $71.8 million on the vehicle and $19.5 million on a sidecar in June, according to filings with the US Securities and Exchange Commission (SEC). Oak Street is targeting a total capital raise of $100 million, according to the SEC.

The firm focuses on the acquisitions of single-tenant, free-standing commercial real estate buildings with long-term leases to investment-grade tenants. In August, Oak Street reportedly acquired the Ridgeview Office Center building in Waukesha, Wisconsin for $65 million from Zilber Property Group and Interstate Partners. The property is the headquarters of the American Transmission Company.