Benson Elliot raises over EUR 500m for second European vehicle

Benson Elliot Capital Management has closed its second pan-European fund, Benson Elliot Real Estate Partners III (BEREP III), with subscribed capital to date of EUR 510 mln.

The announcement by Benson Elliot that it has exceeded its initial target of EUR 500 mln comes at a time when many property funds are believed to be struggling to meet their equity raising goals. Benson Elliot said it launched fundraising for BEREP III in the third quarter of 2008, closing on almost 90% of its target capital in just 10 weeks.

BEREP III will invest in a broad range of performing and non-performing real estate assets across Europe. Subscribers to the fund comprise institutional investors from Europe, North America and Asia, including corporate and public pension funds, endowments, foundations and family offices.

All but one of the investors in Benson Elliot's BEREP II fund have subscribed in the new fund. Benson Elliot said this was an impressive achievement in an environment where many institutions find themselves at or above allocation targets for the property sector. Among the lead investors in BEREP III are Makena Capital Management, the State Teachers Retirement System of Ohio and UTIMCO.

Benson Elliot’s earlier fund, BEREP II, has to date invested about EUR 150 mln in six European countries, with approximately 70% of the capital invested in France and Germany. With the closing of BEREP III Benson Elliot has access to over EUR 600 mln of discretionary equity, and buying power of up to EUR 2 bn.

Marc Mogull, managing partner at Benson Elliot, said: 'This tough fundraising environment favours firms like Benson Elliot, which have the capability and experience to take advantage of market upheaval.

'During the second half of 2008 virtually no private equity real estate funds were launched, due to the paralysis in the real estate sector and wider financial markets. We see our ability to organise, and indeed oversubscribe, BEREP III, in just a few months and with virtually all of our legacy investors participating, as a strong endorsement of our business and our continued investment discipline.'