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Orion Capital closes Fund V on €1.5bn

The London-based private equity real estate firm has held a final closing for the vehicle just three months after holding its first.

Orion Capital Managers, the London-based private equity real estate firm, has raised €1.5 billion for its fifth pan-region opportunity fund, it announced today.

The firm held the final closing for Orion European Real Estate Fund V just three months after holding a first closing of €340 million last December, in a demonstration of both investor support for the firm but also non-core real estate strategies in the region.

Last week, rival Tristan Capital Partners announced an €800 million first closing for its core-plus Curzon Capital Partners 5 Long-Life fund, again in just three months. Such fast-tracked equity closings are a far cry from the years immediately following the global financial crisis when even the more reputable firms could take more than a year and sometimes as much as 18 months to two years to reach a final closing.

In its announcement, Orion said it was oversubscribed, meaning certain investors were not able to invest the equity they intended to. “Orion again enjoyed the support of many long-term investors,” it said.

The capital raising sees it switch tack to being a buyer following two years of major sales in 2014 and 2015. “We are excited by the opportunities being generated by current political uncertainty across Europe,” said chief executive Aref Lahham.

Orion has created a reputation as one of the stronger private equity real estate operations in Europe and has repeatedly seen its funds well capitalized by institutional investors. According to PERE data, its predecessor vehicle, Fund IV, attracted €1.31 billion and had a final closing in 2013, while Fund III collected €1.28 billion ahead of a final closing in 2009.

Alongside Lahham, Orion has been run by fellow-founding partners Van Stults and Bruce Bossom although the firm said Rami Badr was to become an additional partner and member of its investment committee. Badr joined Orion 15 years ago. The firm said: “Orion intends to bring on other senior team members as partners over time.”

Law firm Jones Day advised Orion on fund formation.