NORTH AMERICA - Federal Capital Partners has raised more than $529m (€437m) for its FCP Realty Fund II, nearly $30m more than it originally planned.
Managing partner Esko Korhonen cited several factors contributing to the amount of capital raised in a "difficult" fundraising environment.
"There are many investors - from pension funds to foundations and endowments - that are looking at placing capital into the value-added sector, [and] this is our strategy for Fund II," he said.
"We [also] have invested a lot in apartments, which many investors feel is the best property type to invest in now."
New York State Teachers Retirement System was one of the investors, making a $50m commitment, citing the experience and past performance of Federal Capital's team.
Federal Capital said it has employed a regional investment strategy on the fund, focusing on investments in the US Mid-Atlantic region, from Pennsylvania to South Carolina.
The fund manager has already invested a good portion of the capital, closing on 14 deals utilising $103m of the fund's equity and representing a total value of $367m.
The fund has purchased and improved existing apartments, in addition to acquiring existing office buildings with the idea to converting them to apartments.
It has also closed one apartment development deal.
The fund's overall investment strategy is to invest in a variety of apartments, office, industrial, retail, apartments and manufactured housing.
The investment period for Fund II starts three years from now, and the entire life of the fund is to cover 10 years, with the possibility of two one-year extensions.
Federal Capital is expecting that the total capitalisation of the fund will be $1.5bn, achieved through the use of 65% debt on a portfolio basis.