Schroders launches second continental fund of funds

The London-based global asset manager has been encouraged by the speed with which it has committed equity out of its Continental European Fund I.

London-based Schroder Property Investment Management is raising a second continental European fund of funds vehicle after closing its first vehicle on €253 million ($348 million) of commitments.

The global asset manager said Continental European Fund II would target returns of 8 to 10 percent per year, but will cap the size in order to invest the funds quickly.

Schroders invested 40 percent of its first fund of funds within six months of its first closing. The fund has now closed with $253 million of commitments from 40 public and private pension schemes, charities and other institutions.

It has invested in seven funds with exposure to 11 countries and €2 billion of real estate.

The fund was originally designed to give UK investors an opportunity to invest in foreign markets, but it also attracted a number of pension schemes and LPs on the continent.

In line with many UK asset management companies, Schroders has been expanding its global real estate platform. In December it agreed to acquire Aareal Asset Management, the real estate fund management arm of German financial institution Aareal Bank, for €28 million.