For the second time in a month, a London-based private equity real estate firm has launched with the strategy of tapping family offices and ultra high-net-worth individuals.
Queensgate Investments has been set up by Jason Kow, who is a former head of special situations for London & Regional Properties and LJ Investment Group, a multifamily office with some £4 billion (€4.9 billion; $6.5 billion) of assets under supervision for around 200 families, it was revealed today.
In officially launching the firm, Queensgate revealed it had collected £500 million in equity for its real estate investment programme – £100 million of direct, discretionary equity and £400 million of co-investment capital. The investors are mainly ultra high-net-worth families, it added.
The launch comes after London-based Family Office Real Estate (FORE) Partnership said it had set up and was seeking to buy European real estate on behalf of up to 20 family offices from around the world. Capricorn Investment Group, the family office vehicle of billionaire eBay co-founder Jeffrey Skoll and other high-net-worth families, agreed to become a cornerstone investor in a new pan-Europe club investment vehicle, with an initial commitment of €25 million.
Queensgate’s fund will be targeting investments into ‘long income’ assets, hotels and special situation trades across the UK and Europe. The company believes its non-institutional family capital approach to investing gives it a competitive advantage.
Jason Kow, chief executive, said: “There is as much as €500 billion of property debt in Europe expiring over the next three years and regulatory changes such as Basel III creating unique buying opportunities for investors with ready equity who are able to act rapidly.”