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Starcrest’s debut fund nears $200m second close – Exclusive

The investment management firm is expecting to reach a second close on its maiden China real estate fund in the next two weeks.

Starcrest Capital Partners is set to reach a second close of between $180 million to $200 million on its debut China-focused private equity real estate fund.

Multiple sources familiar with the closing have told PERE that the closing is expected to be announced in the next two weeks.

With this second round capital raise, the investment management firm, which has offices in Hong Kong and Shanghai, would have raised almost two-thirds of its fundraising target for the fund. Starcrest China Real Estate Fund II came to market last year with a $300 million target and a $400 million hard cap. A first close of $100 million was held in June this year.

According to one source, around 13 investors have invested capital in the fund so far. These include a US private pension, endowments, and family offices from Europe and Asia.

Starcrest China Real Estate Fund II is a blind-pool closed-ended vehicle. The dollar-denominated fund, with an eight-year term, will be invested in special situation deals across China. These would include investments in the first tier cities either in the form of distressed asset buys, asset repositioning and refurbishing, or any other deal with a special situation angle.

So far no investment has been made via the fund but PERE understands that the firm is in the process of closing an acquisition in China.

Both Starcrest Capital Partners and Atlantic Pacific, the placement agent for the fund, declined to comment on the fundraising.

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.