Benson Elliot Capital Management, a European private equity real estate firm, says it has closed its second pan-European fund, Benson Elliot Real Estate Partners III, with subscribed ca
Benson Elliot Capital Management, a European private equity real estate firm, says it has closed its second pan-European fund, Benson Elliot Real Estate Partners III, with subscribed capital to date of EUR510m against a target of EUR500m.
Benson Elliot launched fundraising in the third quarter of 2008, closing on almost 90 per cent of its target capital in ten weeks.
The fund will invest in a broad range of performing and non-performing real estate assets across Europe.
Benson Elliot decided to cap Berep III at a level approximately 50 per cent larger than the company’s previous fund, Benson Elliot Real Estate Partners II.
Subscribers to the fund comprise institutional investors from Europe, North America and Asia, including corporate and public pension funds, endowments, foundations and family offices.
All but one of Benson Elliot’s Berep II investors have subscribed to Berep III.
Among the lead investors in Berep III are Makena Capital Management, The State Teachers Retirement System of Ohio and Utimco.
To date Berep II has invested circa EUR150m in six European countries, with approximately 70 per cent of the capital invested in France and Germany.
With the closing of Berep III Benson Elliot has access to over EUR600m of discretionary equity, and buying power of up to EUR2bn.
Benson Elliot says it expects the ongoing disruptions in the global financial markets to create a steady flow of distressed investment opportunities, as many investors seek to reduce their exposure to the property sector, waves of property debt reach maturity, and new debt remains scarce.
In particular, investors who made investments late in the property bull market, often using excessive leverage, will come under increasing pressure to liquidate their positions.
Marc Mogull, managing partner at Benson Elliot (pictured), says: ‘This tough fundraising environment favours firms like Benson Elliot, which have the capability and experience to take advantage of market upheaval. During the second half of 2008 virtually no private equity real estate funds were launched, due to the paralysis in the real estate sector and wider financial markets. We see our ability to organise, and indeed oversubscribe, Berep III, in just a few months and with virtually all of our legacy investors participating, as a strong endorsement of our business and our continued investment discipline.’
