Starcrest Capital Partners, a Shanghai-based investment manager, has raised $100 million in the first close of its debut China-focused private equity real estate fund.
PERE has learnt that the firm has raised a third of the fund’s capital raising target from a total of eight investors. These include family offices, retail investors and other institutional investors.
Starcrest declined to comment on the fundraising.
The firm came to the market with Starcrest China Real Estate Fund II late last year targeting $300 million target, and a $400 million hard cap. The blindpool closed-ended vehicle, with a term of eight years, is US dollar-denominated and the fund corpus is to be invested in special situation deals across China. These would include investments in first tier cities either in the form of distressed asset buys, asset repositioning and refurbishing, or any other deal with a special situation angle.
PERE understands that the firm is anticipating to achieve a final close by June next year.
Starcrest was founded in 2010 by Elvin Lim, previously head of corporate finance for Asia at MGPA; David Yeung, who spearheaded real estate investments at Goldman Sachs’ special situations group; Leo Jia, former deputy chief executive officer of the Shanghai-headquartered property developer Super Ocean Group; and Jeff Liu, who was previously a managing director for China for Angelo Gordon.
Since its inception the firm is understood to have made investments in a total of nine properties across China putting to work more than$300 million in equity. These include direct investments in office redevelopment projects, retail assets and joint venture residential projects funded on a deal-by-deal basis from high-net-worth individuals and family offices.
Atlantic Pacific is the placement agent for the fund.