With the end of the year approaching, PERE Research & Analytics decided to take a look at some of the top funds in market in relation to the region that it targets.
Global: Starwood Capital Group
In April 2014, Starwood Capital Group had launched its latest flagship fund, Starwood Distressed Opportunity Fund X, at a target of $5 billion. The global fund is targeting investments in distressed debt, value-added, income-producing properties, and corporate recapitalizations. Fund X, unlike its predecessor funds, will be more heavily weighted towards Europe, with a roughly 50-50 split between that region and the US. In October 2014, the fund held an interim close at $4.2 billion and is slated to close by the end of the year.
North America: The Carlyle Group
In June 2013, the Carlyle Group had begun fundraising its seventh real estate vehicle, Carlyle Realty Partners VII, at a target range of $3 billion to $4 billion. The opportunistic fund will invest in debt or equity interests in real estate and real estate-related companies across all major property types (i.e residential, hotel, retail, office and senior housing). As at September 2014, $1.69 billion of capital had been raised for the fund.
Asia-Pacific: The Blackstone Group
In late 2012, the Blackstone Group had launched its first Asia-dedicated opportunity fund, Blackstone Real Estate Partners (BREP) Asia at a target of $4 billion and a hard-cap of $5 billion. As of October 2014, the fund had raised $4.6 billion, breaking the record as the largest private equity real estate fundraise for the region. BREP Asia is expected to close in Q4 2014. Additionally, the firm is in market with its eighth global real estate fund with a target of $13 billion in October 2014.
The London-based financial advisory business, AgFe, had launched a £1 billion real estate fund, AgFe Floating Rate Senior Debt Fund. The fund will lend to UK real estate in loan to value situations of up to 70 percent using the capital in the fund. In June 2014, AgFe held a first close of £400 million for the fund and the firm was awarded a £1 billion mandate by LV to manage a fixed rate fund that will invest into mortgages over the next four years.
Latin America: Pátria Investimentos
In September 2013, Pátria Investimentos launched its opportunistic Pátria Real Estate III FIP with a target of R$2 billion. Its previous vehicle, Pátria Real Estate II FIP, held a final close in April 2011 at $567.5 million.
Middle East/Africa: Brookfield Asset Management
In October 2011, Brookfield and the Investment Corporation of Dubai (ICD) had launched its ICD-Brookfield Dubai Real Estate Fund at a target of $500 million and a hard-cap of $1 billion. The fund will be initially seeded with $100 million from each company and invest in a wide class of assets in both freehold and non-freehold areas in the United Arab Emirates (UAE).