PW Real Assets held a first closing for its third fund last month, garnering €1.45 billion in commitments for PW Real Estate Fund III, PERE understands. Five months after launching the vehicle, the London-based firm has raised the lion’s share of its target capital in one sitting.
This is the firm’s first vehicle after its July spinoff from its former parent company, the New York-based boutique bank and advisor Perella Weinberg Partners. Leon Bressler, the former chairman and chief executive of French property giant Unibail, set up Perella Weinberg’s first real estate fund in 2006 and raised two funds before the separation.
PWRA, which now operates independently from Perella Weinberg, is continuing its focus on European real estate investments across property types, investing in both properties and private operating companies. The target fund size was €1.25 billion with a hard cap of €1.5 billion. The firm plans to hold a final closing in the beginning of 2016.
PW Real Estate Fund III’s capital will primarily be deployed in Western Europe, with a focus on in the UK, Germany, France and Spain. For the fund series, PWRA is targeting a 20 percent gross return and 15 percent net.
Investors in the third fund include the Ohio Police and Fire Pension Fund and the Texas County and District Retirement System, which each committed $50 million; the New Jersey Division of Investment, which committed $100 million; and the Public Employees Retirement Association of New Mexico, which committed $70 million, according to PERE Research & Analytics.
Many of these investors, including NJDOI, have returned after putting money into earlier funds, lured in part by reduced management fees. Bressler is committing at least €17 million of his own capital to the fund, with three other executives writing €1 million checks each.