Tristan Capital Partners has raised €1.5bn for a value-add strategy focused on Europe.

The investment manager said the capital raise was its fastest ever, with a final close just after four months of marketing.

New and existing investors backed the fund, with half of the invested capital coming from the US and the remainder split between European and Asia-Pacific investors.

Tristan said 34 investors backed the European Property Investors Special Opportunities 4 (EPISO 4) fund.

Ric Lewis, chief executive at Tristan Capital Partners, said real estate had become an attractive alternative for fixed income investments, both in terms of yield and duration, in a low-interest-rate, low-inflation market.

“Our recent fund offering also benefited from the strong appetite for European property assets, where there is still considerable value to be extracted as the EU’s economic recovery gains momentum,” he said. 

The company said more than €500m of capital could not be accommodated by the fund, leaving it around 30% oversubscribed.

Tristan is aiming for a 15% triple net annual return from the fund, which will invest in Western and Central European markets across the office, logistics, retail and residential sectors.