Tristan Capital raises €800m for first 'perpetual life' fund
Tristan Capital Partners has raised €800m for its first perpetual life real estate fund.
European fund manager, which has previously raised a number of finite-life, closed-ended funds, said it had responded to investor demand for long-term exposure to core-plus assets.
Tristan Capital said it is seeking €1bn in total and raised the initial €800m within three months of marketing.
Chief executive Ric Lewis said: “Investors have a near-insatiable appetite for yield and duration and are demanding secure assets that offer both attributes and which they can invest in with confidence.”
Curzon Capital Partners 5 Long-life is the latest in Tristan Capital’s core-plus series of European real estate funds but is the first to use a “long-life structure”.
It is not clear if it is structured as an open-ended fund, but Tristan Capital said it had “multiple liquidity features and will allow investors to recycle capital in the same vehicle”.
The annoucement comes at a time when a number of investment managers are raising capital for pan-European open-ended vehicles as they respond to investor demand for income yields.
The Tristan fund will employ a “value-added light strategy”, targeting net returns of more than 10% by investing in assets with “a single correctable impairment”.
It will focus on Western and central European markets in the office, logistics, retail and residential sectors.
The company said the fund “offers an attractive liability match for institutions, reducing the investment risk associated with private equity real estate investing”.
Lewis said: “Over the past few years we have seen the majority of global institutional investors increase their allocations to real estate, as they struggle to meet their investment needs with poor options in equity and fixed income markets.”