KKR has raised $2.2bn (€1.9bn) for its second value-add and opportunistic European real estate fund.
The amount raised for the KKR Real Estate Partners Europe II (REPE II) fund exceeded the $739m raised in June 2016 for the manager’s first dedicated European real estate fund.
As previously reported, Maine Public Employees Retirement System approved a $25m commitment to the REPE II fund, which targets opportunistic investments primarily in Western Europe.
KKR said REPE II’s fundraising was backed by a diverse group of both new and existing investors globally, including public pension plans, sovereign wealth funds, insurance companies, financial institutions, endowments, private banking platforms, family offices and high net worth individual investors.
Jon Fiorello, the head of KKR’s real estate strategies team, said: “We are pleased to have the backing of many investors from around the world who share in our enthusiasm for REPE II, helping us surpass our initial target for the fundraise - a testament to our real estate expertise, our global investing platform and the team’s track record.”
KKR said as of 30 June 30, REPE II had already committed more than $700m of capital principally across logistics and residential investment opportunities.
The manager said the fund will target sub-sectors with attractive structural dynamics, including logistics, residential, student housing, hospitality and high-quality offices.
Ralph Rosenberg, a partner and global head of KKR Real Estate, said: “We continue to believe that Europe represents an attractive investing environment for real estate. Our real estate strategy is closely integrated with the wider KKR platform, our multi-disciplinary investment expertise and is underpinned by our strong global track record.
“This breadth means we can be a differentiated partner to entrepreneurs, developers and management teams, and we are well-positioned to execute on the opportunities we see in Europe.”
Guillaume Cassou, partner and head of European real estate at KKR, said: “REPE II’s close is a very exciting milestone for our global strategy and the scaling of our European platform. The evolution of the real estate sector is creating a strong pipeline of opportunities that are well-suited to KKR’s flexible investment approach.”
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