Tishman hires Greenhill for US fundraise

Tishman Speyer has tapped the fund placement division of Greenhill & Company to help complete the capital raise for its latest US fund, Tishman Speyer Real Estate Venture VIII, PERE has learned.

Tishman is targeting at least $750 million for the fund, which held a first close in March and to date has raised $500 million without a placement agent, according to sources familiar with the matter. PERE understands that Dutch pension asset manager APG, which is said to have committed $200 million, is the lead investor in the fund, and other limited partners include US insurer The Travelers Companies. In addition, Tishman made a co-investment of $50 million to the fund’s first close, according to a filing with the US Securities and Exchange Commission.

Greenhill, which was hired late last month, will focus on reaching out to US investors for the fund, while Tishman will continue to market to foreign investors on its own, with the goal of completing the capital-raise by year-end, sources said. The firm is said to be the first placement agent that the New York-based developer and fund manager has hired to assist with a fundraising. Both firms declined to comment.

Tishman Speyer Real Estate Venture VIII will pursue value-added investments in North America, following a similar strategy to that of its predecessor, Tishman Speyer Real Estate Venture VII, which held a final close of $1.5 billion in 2008.

Tishman also has been on the fundraising trail with two other real estate vehicles this year. In May, the firm announced it had raised RMB 1.2 billion (€145 million; $190.6 million) exclusively from Chinese investors for a China-focused real estate fund that would focus on a mixed-use development in Suzhou, China. Meanwhile, Tishman currently is raising Tishman Speyer Brazil Fund III, an opportunistic development-focused fund that is said to be targeting $500 million in commitments.

The use of placement agents by established fund managers, rather than first-time sponsors, has become more common since the financial crisis, as firms have aimed to diversify their investor base amid a more challenging fundraising environment.