US investment firm HIG Capital has successfully closed its H.I.G. Europe Realty Partners III fund at $1.3 bn (€1.5 bn).
This is significantly above the amount raised by its predecessor fund, HIG Europe Realty Partners II, which closed in 2019 with €673 mln in capital commitments.
The latest fund focuses on acquiring and improving mid-sized real estate assets across Europe. It has already made over 10 investments in various European locations.
A diverse group of global investors from North America, Europe, Asia, and the Middle East provided the capital for the fund. These investors include public and private pension funds, endowments, foundations, asset management firms, consulting groups, investment funds of funds, financial institutions, and family offices.
Sami Mnaymneh and Tony Tamer, co-founders of HIG, commented: ‘As we continue to expand our global real estate footprint, we are thrilled by the success of our European real estate platform as evidenced by the strong support from our investors. We believe the current environment, specifically in the UK and Germany, where market dislocations are driving meaningful repricing across asset classes, presents compelling investment opportunities for the Fund.’
Riccardo Dallolio, head of Europe Real Estate, added: ‘The fund is well-positioned to capitalize on the current market opportunity set in the less efficient middle market segment across Europe. It will invest across the capital structure and asset classes with a particular focus on value-add and operational improvements to generate substantial asset appreciation.’
