AXA Real Estate Investment Managers underlined the importance of separate accounts today by revealing that two thirds of fresh equity raised this year has come from investors awarding separate mandates.
It said €800 million of the €1.26 billion in the first quarter has been derived from third party investors and AXA Group clients, while the remaining €460 million has been raised in commingled fund formats – the two vehicles being Development Venture III and its debt fund, Commercial Real Estate Senior 1.
The €800 million raised for separate accounts has come from new and existing investors across Europe, including France, Switzerland and the Nordics, the firm said. Typically, they were seeking “high-level, individually tailored solutions” supporting “unique strategies”.
Kiran Patel, global head of business development, distribution, research and strategy, said: “We expect to continue to see this strong capital raising momentum for the remainder of the year, based on our discussions with investors in Europe, but also Middle Eastern and US investors looking to deploy capital in the global markets.”
He added: “As we emerge from the economic crisis, we are seeing a continued and evolving change in the way investors, particularly large institutions, approach investment opportunities. They are increasingly inquisitive about investment strategies and undertake significantly more due diligence than in previous times. Whilst this inevitably results in a longer time frame for capital raising, we believe it is a positive step, which is conducive to a closer, longer term relationship with our clients, one that also creates and forges a strong working partnership for a similar end ultimate goal.”