Quilvest brews RE debut through $250m FoF

Quilvest, the Argentinean family office which made its money from the famous Quilmes beer brand, is taking its first steps into private equity real estate through the launch of a $250m fund of funds.

Quilvest, the investment business of Argentina’s famous Benberg brewing family, is set to close its first dedicated real estate investment fund.

The family office, well known for once owning Argentina’s Quilmes beer, has raised $185 million so far for its QS REP global fund of funds, and is expecting to increase that amount for a final close of $250 million before the end of the year.

Quilvest has $12 billion of funds under management, including capital from other family offices, and has been making investments in private equity for more than 35 years. However, it only established a real estate platform in late 2007 with the appointment of partner and managing director Marc Manasterski. Manasterski is formerly chief executive officer of Alliance Hospitality Group, the management platform for various hotel portfolios owned by Goldman Sachs’ Whitehall funds.

The team now has five executives in Paris, including Jocelyn Laudet, who previously worked for a joint venture between Prudential Financial and Madison Capital Management, and is planning to expand the team in New York, where Quilvest also has an office and has hired partner and managing director Ione Permison.

Laudet told PERE: “We have decided to move in private equity real estate because we have been successful in private equity and hedge funds in the past. We see the real estate market as something that could be buoyant and rewarding.”

Of the equity raised for the QS REP fund of funds, $105 million was committed by the firm with a further $80 million raised from other family offices, principally from Europe and the Middle East. It is expected that the final $65 million will also be raised from family offices.

Laudet said: “As a multi-family office we are like a magnate to single family offices because they do not have the resources or experience to select funds.”

The fund is targeting an IRR of 15 percent and is expected to run for at least 10 years in line with the lifespan of its underlying funds.

The vehicle plans to invest in between 30-40 opportunity funds which invest in key cities such as New York, Los Angeles and Washington in North America, Sao Paulo and Rio de Janeiro in Brazil and Paris, London, Munich, Hamburg and Berlin in Europe. In Asia, the fund of funds plans to invest in pan-Asia vehicles.To date, it has committed $10 million to a Brazilian fund and $15 million to a pan-Europe fund.

Quilvest is run by descendants of the original brewing entrepreneur Otto Peter Benberg and ramped up its alternative asset investment program after selling its brewery business in 2006 which ultimately led to the formation of drinks giant InBev.