Composition Capital Partners is gearing up to launch a new fund of funds this year for the European market. Its second European fund is now fully invested following the completion of three residential and commercial property investments in Germany and the Nordics in June.
Composition Capital Partners is gearing up to launch a new fund of funds this year for the European market. Its second European fund is now fully invested following the completion of three residential and commercial property investments in Germany and the Nordics in June.
For its third Europe Fund, the company is looking initially at core countries in Europe, including the UK, Benelux, Nordics, Germany, France and Poland. The target size of the fund is around EUR 300 mln and marketing will begin in the second half of the year, according to founding director Erwin Stouthamer: 'Now is a better time than last year for fund raising. A number of investors haven't done anything these past few years. Europe has re-priced and investors see it is time to move again.’
Stouthamer expects renewed investor interest in fund of funds after a sharp fall in the wake of the global financial crisis. ‘Post-crisis, quite a few institutional investors have started to build up their real estate teams as they realized it takes experience and ample capacity to run a cross-border real estate portfolio. Investors that choose not to in-source talent will need to out-source to fund of fund managers to access the necessary capacity, experience and access to the local talent network.’
Founded in 2005, Composition Capital Partners is an independent investment management boutique firm with more than $800 mln (EUR 550 mln) of assets under management. The firm has two European funds and two Asian funds with commitments to more than 25 local partners. The company has offices in Amsterdam and Hong Kong, and around 20 staff.
Earlier this week, the investment manager announced it has concluded two Japanese residential investment deals through its Composition Asia Fund II involving a total investment of around $40 mln (EUR 28.6 mln). The investments have different strategic approaches and provide investors with exposure to two distinct subsectors of the Japanese residential market including senior living.
