Pan-European real estate investment manager Tristan Capital Partners has completed capital raising for the latest fund in its value-add/opportunistic series, with equity commitments from investors totalling just under €1.7 bn.
European Property Investors Special Opportunities 5 (EPISO 5) was almost 100% oversubscribed, with around €1.5 bn of unfulfilled demand, according to the firm.
EPISO 5 has a total of 39 investors including both existing and new clients, with a repeat investor rate of approximately 60%. Clients are predominantly from the pensions, family office and foundations, insurance and sovereign funds sectors. Over 55% of EPISO 5 clients are from Europe, Asia and the Middle East and 45% are from the US.
'We made a conscious pre-offering decision to try and maintain the fund at the same size as EPISO 4 despite a pipeline of demand that considerably exceeded the amount we raised,' said Sasha Silver, managing director and head of client development at Tristan.
'We are proud that the majority of capital we have raised still comes from a group of loyal clients, a number of which have supported Tristan since day one.'
EPISO 5 is Tristan’s 10th fund and has a mandate to generate a 12-14% triple net annual return by investing in Western and Central European real estate markets across the office, logistics, retail and residential sectors. Its predecessor, EPISO 4 had a final closing at €1.5bn in July 2015 and is fully committed to 32 investments across Europe.
'We’re still optimistic about the outlook for European real estate markets but we’ve invested and managed capital through enough cycles to know that this is the point where keeping one’s discipline is wise,' said Ric Lewis, co-CEO and chairman of Tristan.
'Our focus now is on doing our best to build an ‘all-weather’ portfolio with lower asset-level risk, less exposure to late stage markets and conservative financing, all of which will help move our strategy toward resiliency in this maturing market cycle,' Lewis added.
The co-CEO concluded: 'This summer we will celebrate both Tristan’s 10th anniversary and the 20th anniversary of our predecessor firm, Curzon Global Partners. With assets under management of around €11 bn and a talented team of over 120 people we, together with our clients, have built an impressive business, which we believe will continue to shape and advance real estate investing in Europe.'
