Sparinvest holds first close on third FoF

The Danish multi-manager has attracted €153 million from four investors for its latest global fund of funds offering.

Sparinvest Property Investors has held a first close for its third global real estate fund of funds. A statement from the Copenhagen-based multi-manager reveals that it has raised €153 million in equity from four investors for Sparinvest Property Fund (SPF) III. Danish pension plans Laerernes Pension (Teacher’s Pension) and AP Pension are among the four investors. 

“We expect to raise additional capital over the coming months and are involved in a number of conversations with both existing and new investors,” said Sparinvest managing partner Bo Jensen. SPF III is seeking a total of €400 million in equity before its final closing.

Through the fund of funds, Sparinvest will continue the global investment strategy of SPF II, which had with a focus on mid-sized local operating partners. The fund will invest primarily in the Americas and Asia and less so in Europe. The return target for SPF III is 11 percent to 13 percent net IRR.

As part of the first closing, SPF III will commit to three managers. The first three investments are with two managers in the US and one debt manager in the UK. A fourth investment is expected to follow over the summer. 

Founded in 2005, Sparinvest focuses exclusively on indirect real estate investing. The firm closed on €200 million in equity for SPF II in September 2011.