RedTree Capital, the private equity real estate business of ex-Carlyle executive Eric Sasson, has held a first closing for its debut commingled fund, PERE can reveal.
The Paris-based firm, which was established in 2014 by Sasson and fellow ex-Carlyle colleague Robert Hodges, has raised €120 million for the RedTree French Real Estate Fund. The fund has a fundraising target of €250 million.
Investors in the raise include a range of institutions from France, Isreal and the Nordics as well as high net worth families. Among the investors is an insurance company and a multi-manager.
The vehicle is being raised against a value-add risk and return strategy centred around the office, residential and logistics sectors in France, with a greater focus on Paris and its surrounding areas.
RedTree is aiming for a net IRR of more than 14 percent and an equity multiple of 1.7x. For this, it is charging investors a 1.5 management fee and 20 percent carried interest over an 8 percent hurdle.
“We think it’s a good time in France to do this,” Sasson told PERE. “For three reasons: the most important is the infrastructure works of Paris. Secondly, the politics. Whatever people think of [French president Emmanuel Macron], he’s doing real work which is business-friendly. Third, the population is growing so more square meters of residential is required.”
RedTree has been investing on a deal-by-deal basis until now, amassing some 20 transactions. From these, the firm has generated a gross IRR someway above its projected aims for the RedTree French Real Estate Fund.
Sasson is the sole leader of RedTree, which today comprises 10 staff, after co-founder Hodges died in 2017.
The firm is being supported in its capital raising effort by Capra Global Partners