Portfolio Advisors has collected $182.9 million in commitments in a follow-on close from five investors for its latest real estate fund of funds, according to a Monday filing with the US Securities and Exchange Commission (SEC). The Darien, Connecticut-based firm held a first close of $132.9 million in March 2015, according to the SEC. The filing did not specify the target size for the fund.
Portfolio Advisors declined to comment on the fundraising process for Portfolio Advisors Real Estate Fund (PAREF) VI.
In October, the firm closed the predecessor vehicle, PAREF V, at $437 million, beating its $400 million target. The firm held a first close on $50 million for the fifth fund in January 2013 with and held subsequent closes of $195.6 million in April 2014 and $273.2 million in April 2015, according to SEC filings.
A spokesman for the firm told PERE in October that Portfolio Advisors would commit up to 2 percent of the capital for PAREF V, which has a 14 percent target return. About 80 percent of the fund’s commitments came from investors who previously committed to Portfolio Advisors’ vehicles, according to an announcement at the fund’s closing. These existing investors included Oklahoma Firefighters Pension & Retirement System, which committed $25 million to PAREF V, according to pension documents, and Philadelphia-area nonprofit Connelly Foundation, according to the organization’s tax filings.
The PAREF series has an investment strategy focused on opportunistic and value-added funds centered on the office, residential, retail, hotel and assisted-living sectors, as well as secondary fund interests. PAREF V also has a small allocation to funds focused on self-storage and industrial warehouses, according to the firm. The firm is investing the vehicle’s capital in the US, Western and Central Europe and certain markets in Asia, according to the October statement.