Chicago-based Equity International, the private equity firm co-founded by Sam Zell and Gary Garrabrant, has announced the initial closing of its latest fund, Fund IV, dedicated to investin
Chicago-based Equity International, the private equity firm co-founded by Sam Zell and Gary Garrabrant, has announced the initial closing of its latest fund, Fund IV, dedicated to investing in real estate-related companies outside the US.
With around USD500m in equity capital commitments from investors including university endowments, pension plans, insurance companies, family foundations and private individuals, the fund is Equity International’s largest to date.
Fund IV continues Equity International’s strategy of investing in real estate-related operating platforms, and seeks to capitalise on major trends including growth of the middle class in emerging markets, monetisation of corporate property, broadening equity and debt securitisation, demand for senior housing, and the more recent financial dislocation in global capital markets.
Drawing on its global network of relationships and resources, Equity International aims to generate superior investment returns through its real estate expertise, access to capital and creation of substantial enterprise value.
Fund IV is the latest in a series of funds launched by Equity International since the firm’s establishment in 1999, which have raised in aggregate more than USD1bn and invested in 15 portfolio companies representing a wide spectrum of businesses, with a focus on homebuilding and corporate and retail property.
Investments include leading homebuilders in Mexico (Homex), Brazil (Gafisa), and China (Xinyuan), for which Equity International led successful initial public offerings in 2004, 2006 and 2007 respectively.
‘We increased our fund size to USD500m in response to our robust pipeline of outstanding opportunities,’ says Garrabrant, Equity International’s chief executive. ‘With Fund IV, we will continue our successful investment strategy and partnering approach in markets where we have an active presence such as Brazil and China, as well as exploring new markets.’
Diane Morefield, the firm’s chief financial officer, adds: ‘We were oversubscribed in this fund, attracting several distinguished new institutional investors, as well as re-committing all our current investors. The level of interest in Fund IV signals the recognition of Equity International’s strong reputation and investment track record, as well as the strength and quality of our investor relationships.’
