Tristan Capital Partners, the London-based firm started by chief executive Ric Lewis in 2009, has closed its 'debut' fund on €420 million of commitments.
The company is set to announce imminently that a fourth and final close has taken place for CCP III LP Fund, which is a core-plus offering. It follows the firm’s second closing in October at which stage it had corralled more than €300 million, and a third close that took place shortly afterwards.
It is also expected to say that the fund is around 40 percent invested and 60 percent committed already and that it has decided to cap marketing efforts against a €500 million hard cap in order to focus on deals in the pipeline and also to manage the substantial portfolio it has already built up.
Tristan began raising CCP III in April last year, although marketing efforts kicked off in March around the time of the MIPIM property show in Cannes in the south of France.
A total of 13 institutional investors have invested in the vehicle from countries such as Germany, the Netherlands, Finland, the UK, the US and Singapore. Of the 13, eight are thought to be existing investors in funds managed by Tristan (whose forerunner is Curzon Capital Partner), and five are new.
So far, the firm has invested in a €34 million retail and residential complex in Düsseldorf, Germany, €23 million in a new office block in Glasgow, Scotland, €38 million in a high street retail shopping centre in the UK, €100 million in funding for a pan-European logistics developer, and €135 million in six Czech logistics parks.
Tristan Capital’s head of client relations, Monica O’Neill, said: “Tristan decided to hold an early final capital close on CCP III, just eight months after the first close. Although there were more institutional investors interested in participating, we decided to cap our marketing efforts below the fund’s hard cap of €500 million to focus on deals we have in our pipeline and manage the already substantial portfolio we’ve built for investors.”
Lewis said many managers were struggling to raise capital because they were forced to reach for “unrealistically high opportunistic returns” in European real estate markets. “We said at the launch of the CCP III Fund that the current market environment lends itself more to moderate risk versus return, core plus/value add strategies and this has been proven by the fact that we’ve already successfully invested over 40 percent of the equity raised in the last several months.”