Revcap Advisors has provided a rare bright spot in the European fundraising scene for opportunistic funds – and first-time funds in particular – by reaching a first close for its higher-return vehicle, which is targeting £150 million (€186 million; $233 million) in commitments.
The London-based firm – started in 2004 by former Lehman Brothers bankers Andrew Pettit, William Killick, François Guiraud and Stefan Lanefelt, plus former Catalyst Capital partner Stephen Pettit – has raised £60 million for Kitty Hawk Capital Partners II, its first commingled fund. Investors in the fund are thought to include existing separate account clients, as well as institutional investors that have not invested with Revcap previously. The firm is aiming for a final close later this year.
The feat will be noted by a clutch of firms that either have launched European opportunistic funds or are considering doing so this year. Indeed, the first close comes at a time when experts say it has become extremely challenging for first-time funds to achieve success, given that many investors appear opposed to backing firms without a long track record.
Revcap, which is being advised by SJ Berwin, Bedell Cristin, Jersey Trust and Godwin Procter, targets real estate co-investment opportunities in smaller market transactions, often below the typical minimum investment size of the larger opportunity funds. It is known to have completed two deals recently, one being in the Paris office sector and the other being a senior loan position in Scotland. It also has been taking strategic positions in the London residential market. However, the firm is perhaps best known for a £60 million recapitalisation of Insite Poster Properties, the largest private owner of billboard properties in the UK, last March.