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Dividend Capital launches global real estate private equity fund of funds

Denver-based Dividend Capital Group, a diversified real estate investment management company, has announced the launch of a private equity fund of funds focused on global real estate value

Denver-based Dividend Capital Group, a diversified real estate investment management company, has announced the launch of a private equity fund of funds focused on global real estate value-add and opportunity funds.

The Dividend Capital Global Real Estate Fund of Funds is designed to offer a diversified portfolio of institutional-quality global real estate private equity funds to qualified investors who would typically not have access to these types of underlying funds.

The fund’s investment strategy is to construct a portfolio of between 10 and 15 real estate private equity funds diversified by geography, sector, investment strategy, investment manager, fund type and investment structure.

The Dividend Capital Global Real Estate Fund of Funds is being offered exclusively through financial advisors at firms with which Dividend Capital Securities, the fund’s distributor, has a selling agreement.

Unlike many private equity funds of funds that are private, unregistered offerings, Dividend Capital Global Real Estate Fund of Funds is a registered product that offers full transparency through public filings of its prospectus and future material event documentation with the Securities and Exchange Commission.

The fund’s portfolio manager is Howard Margolis, who was previously senior vice-president for investments with the Government of Singapore Investment Corporation, one of the largest real estate private equity investors in the world.

He was responsible for more than USD3bn in equity investments in and commitments to real estate private equity funds and joint ventures, of which more than USD1bn was in ventures in markets outside the US, including Brazil, Mexico and Europe.

The firm says Margolis’s experience in real estate private equity complements the expertise of Dividend Capital Group’s principals and affiliates, who collectively have developed or acquired real estate assets totalling more than USD6.5bn on behalf of individual and institutional investors.

‘While institutional investors have long sought out global real estate value-add and opportunity funds, most individual investors have been shut out from these kinds of investment opportunities due to the large minimum investment requirements and expertise required to evaluate the underlying funds,’ Margolis says.

‘In making this fund available to qualified individual investors, we took the added step of registering the product with the SEC to provide full transparency to both clients and their financial advisors.’

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