Bridges Fund Management (Bridges), a specialist sustainable and impact investor, has announced the final close of Bridges Property Alternatives Fund V at its hard cap of £350 mln (€408 mln) – the largest fund Bridges has raised to date.
Fund V closed £50 mln above its original target of £300 mln, thanks to strong demand from a range of pension funds, family offices, and private investors in the U.K., Europe, and North America.
The Fund is almost 60% larger than its predecessor vehicle and enjoyed a re-up rate of over 80%, enabling Bridges to continue working with long-standing investors – including Clwyd Pension Fund, East Riding Pension Fund, the Environment Agency Pension Fund, Merseyside Pension Fund and South Yorkshire Pensions Authority – while also adding new investors.
Almost half of total commitments came from new LPs, including Church Commissioners for England, The Dunhill Medical Trust, Enowe, Investcorp-Tages, The J.W. McConnell Family Foundation and Mercer Private Investment Partners VI. A significant portion of these new investors chose to partner with Bridges specifically because of Bridges’ dual focus on financial and impact performance.
Fund V builds on Bridges’ 12-year track record of investing in growth locations and needs-driven sectors – particularly healthcare, low carbon logistics, and lower-cost & affordable housing – where a focus on sustainable development can achieve both attractive financial returns and positive social and environmental impacts.
Simon Ringer, head of Bridges Property Funds, said: ‘We are already ahead of our deployment targets for Fund V having secured 17 transactions, many of which have been completed off market. By concentrating on our preferred alternative and needs-driven sectors such as low-carbon logistics, healthcare and lower-cost housing, we have been able to generate consistent financial returns – typically well ahead of market benchmarks – whilst also achieving meaningful social and environmental impact. We have always believed that renewing our built environment is a critical part of the transition to a more sustainable and inclusive economy. The support for Fund V is testament to the importance real estate investors are now placing on sustainability and impact factors.’
Fund V is already over 50% invested or committed – including Bridges’ first real estate deal outside the UK, in Dublin. In addition, 20% of Fund V’s current investments have either been pre-sold or forward-funded, thereby substantially reducing the risk profile of the fund.
