Pamfleet raises $435m for latest fund on upsized pension allocations – Exclusive

Around 40% of the capital raised by Pamfleet for its third value-add fund has come from this investor type.

Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has corralled $435 million so far for its third value-add real estate fund, executives at the firm have confirmed to PERE.

The firm is targeting to close Pamfleet Real Estate III at its $450 million hard-cap within the second quarter of 2019, which will make it the largest vehicle in the firm’s flagship value-add series.

According to PERE data, the US public pension San Francisco Employees’ Retirement System is one such investor with a $25 million commitment, according to PERE data. Other LPs include life insurance companies, endowments and family offices, among others.

Meanwhile, one-third of the commitments for the $400 million PREF II came from pension funds, while it was one-fourth for the $209 million PREF. According to PERE data, two Netherland pension funds, SBZ Pensioen and Stichting Pensioenfonds ING were among the LPs in the 2011-vintage PREF.

“Most of the pension funds have been tracking us from the previous funds and tend to already have some exposure in Asia through pan-Asian funds. Pamfleet would complement their existing Asian exposure,” said YC Tang, the firm’s head of Singapore.

PREF III was launched by the firm in the summer of 2018 with the same $350 million initial capital raising target as its predecessor. The hard-cap was eventually increased from $400 million to $450 million to accommodate increased investor demand, one executive told PERE.

Around 80 percent of the existing investors in PREF II are believed to have re-upped for PREF III.

No investments have been made from PREF III yet. In terms of returns, the firm is targeting 15-18 percent net IRRs from the fund, like its predecessor.

PREF II, which closed on $400 million in mid-2015, was fully invested as of last June in eight deals, primarily in Hong Kong. And PREF, which was invested in seven deals, was fully divested last December. PREF has generated a 19 percent IRR and a 1.5x multiple.