Tristan Capital Partners, the London-based private equity real estate firm, has raised 80 percent of the capital it is targeting for the fifth offering of its core-plus real estate investment fund series.
The firm is expected to close on €800 million from its investor base for its Curzon Capital Partners 5 Long-Life fund by the end of the month.
Tristan will target 10 percent-plus net returns via the fund, with an annual dividend of 3-5 percent from investments in offices, logistics, retail and residential sectors across western Europe.
Ric Lewis, Tristan’s chief executive, said: “Over the past few years we have seen the majority of global institutional investors increase their allocation to real estate, as they struggle to meet their investment needs with poor options in equity and fixed income markets. Investors have a near-insatiable appetite for yield and duration and are demanding secure assets that offer both attributes and which they can invest with confidence.”
CCP5 is structured differently to the firm’s prior funds in the series in that it offers liquidity features that enable investors the option of recycling their equity. The previous funds in the series were closed-ended.
Lewis said the firm’s decision to market a ‘perpetual’ fund had been justified by its capital support.
“The speed with which we have raised capital is testament to the strength and longevity of our core-plus track record and the strength of our relationships. We are fortunate the majority of the capital came yet again from existing clients, reinforcing our belief that the pool of trusted managers in Europe grows ever-tighter,” he said.