PCCP has wrapped fundraising on its sixth real estate debt fund, PCCP Credit VI. The firm collected a total of $909 million, exceeding its original target of $750 million.
PCCP launched the vehicle in 2013 and held a first close of $131.5 million in June 2014, according to filings with the US Securities and Exchange Commission. As of June, the firm had raised more than $545 million for the fund, the filings said. PCCP declined to comment.
Limited partners included the California State Teachers’ Retirement System and the West Virginia Investment Management Board, according to documents from those pensions. About a third of the capital was raised from overseas investors, including equity from European, Korean and Australian institutions. Approximately 40 percent of the fund’s capital came from repeat investors, while the remainder was amassed from new limited partners.
PCCP Credit VI, like its predecessor funds in the series, is focused on the origination of senior floating-rate loans that are secured by institutional-quality real estate, primarily in the top 25 US markets. The fund has a gross return target of 12 to 13 percent and net return target of 10 to 11 percent. Credit VI currently is about 50 percent invested. PCCP raises capital through a number of different types of vehicles in its Credit series, including commingled funds and JVs. While all of the Credit vehicles invest in real estate debt, the joint ventures, which are tailored to specific clients, have different credit strategies than the commingled funds.
The firm also is in the market with its seventh equity fund, PCCP Equity VII, and had gathered $271 million during the first close of the fund in May, according to SEC filings. Equity VII has a target size of $500 million, according to PERE Research & Analytics. The Teacher Retirement System of Texas and CalSTRS both have committed to the fund, which is said to have a gross return target of up to 20 percent.
“These two funds are a subset of $5 billion we’ve raised since the downturn,” said Greg Eberhardt, a partner at PCCP.
Hodes Weill & Associates acted as placement agent on PCCP Credit VI.