Tristan holds €170m early close to invest in two deals

Tristan Capital Partners, the London-based firm, has raised just under a quarter of its overall €750m target so far for its European Property Investors Special Opportunities 3 (EPISO3) opportunity fund. The firm is eyeing two deals for the capital.

Tristan Capital Partners, the pan European private equity real estate firm, has held a first close on €170 million for its opportunistic vehicle, European Property Investors Special Opportunities 3 (EPISO 3).

London-based Tristan is shooting for an overall target of €750 million for the fund, and said today it held an early first close four months after launch to provide equity to buy two assets – one in the UK and one in Germany – given it has negotiated exclusivity on the transactions.

The commitments have come from five repeat investing institutional investors and two new LPs.

EPISO is targeting returns of between 15 percent and 18 percent for a four year to eight year investment period and intends to invest using leverage at a maximum 60 percent loan to value. The fund is targeting office, logistics, retail and residential assets.

Ric Lewis, chief executive officer, said: “Tristan never subscribed to the prevailing market view during the Eurozone financial crisis that predicted the end of the EU and the European monetary union.  To the contrary, we believe that the severe risk aversion of many investors, combined with an enduring shortage of equity and debt capital and a historically low volume of new developments, have combined to create a favourable investment environment in Europe.”

Earlier this year, the company closed a core-plus fund, Curzon Capital Partners III, on €420 million of commitments. Just yesterday, Tristan trumpeted a deal in Germany for that vehicle.