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Swift closes second fund on $410m

The San Francisco-based firm saw 97 percent of its previous investors return for the second value-added fund.

San Francisco-based investment firm Swift Real Estate Partners had a quick fundraising season for its second value-added fund.

The firm started fundraising for Swift Real Estate Partners Fund II at the end of December, as PERE previously reported, and closed at $410 million last month, exceeding its $400 million target.

“Fundraising is never easy,” founder Christopher Peatross told PERE. “I think that was as good as we could’ve ever hoped for.”

Swift is planning to deploy capital using a similar strategy to its prior fund, which focused on industrial and office properties in the northwestern US. To date, the firm has purchased five assets, deploying between 10 and 15 percent of the fund’s capital, Peatross said. The firm is targeting a net internal rate of return in the mid-teens.

About 97 percent of investors in the firm’s debut vehicle returned to invest in the second fund, founder Christopher Peatross told PERE. Swift Real Estate Partners Fund I exceeded its $250 million target, garnering $325 million before its April 2014 final close. Investors in the first fund included the Teacher Retirement System of Texas, which allocated $15 million, and Credit Suisse, according to PERE Research.

Peatross, who was formerly president and chief executive of The Blackstone Group’s Equity Office Properties, founded the firm in 2010. It now has about $1.5 billion of assets under management. Swift’s chairman, Douglas Abbey, served as co-founder of both AMB Property Corporation, a San Francisco-based industrial real estate company that merged with ProLogis in 2011, and IHP Capital Partners, a Newport Beach, California-based residential real estate investment firm, before joining Swift at the beginning of 2013.