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Sparinvest raises €500m for Fund IV – Exclusive

The Copenhagen-based multi-manager is well on its way to reaching its €650 million target for its latest fund.

Copenhagen-based Sparinvest Property Investors is currently raising its fourth multi-manager fund and has already raised €500 million for the vehicle, PERE understands.

The capital raised for the vehicle, Sparinvest Property Investors Fund (SPF) IV, is just shy of its €650 million target, which the firm is expected to reach later this year.

For this latest vehicle, the multi-manager will expand the indirect investment strategy of its predecessor fund to also invest directly alongside local operating partners via joint ventures or club deals.

The current fundraising success is in large part down to 90 percent of investors in the prior fund re-upping. It is understood the last two funds are currently generating internal rate of returns in excess of 20 percent, far surpassing the targeted net IRR of approximately 12 percent.

SPF III, which attracted a total of €317 million in July 2014, is fully committed and approximately 75 percent drawn, with some two-thirds of the capital allocated to developed markets and one-third to emerging markets.

Allocations to Asia account for the largest percentage of Fund III's committed capital, at 37 percent, while the Americas are just behind at 36 percent and Europe at 27 percent.

Among Sparinvest’s investments for Fund III is a commitment to the second China opportunity fund of InfraRed Capital Partners and Chinese textiles giant Nan Fung.