Real Asset Partners is fully committed to the success of the PERE managers on its platform and offers them a highly bespoke capital raising strategy to target the most relevant sources of capital for Core, Core Plus, Value-Add and Opportunistic strategies.
WE RAISE CAPITAL FOR THE FOLLOWING REAL ESTATE SECTORS:
Case Study 1
Transitioning to an Institutional Investor Base
In 2016, a manager of German food retail assets had an exclusive sale & leaseback opportunity within a portfolio of assets from a major tenant. Until that point the manager had been investing through retail funds, and the new portfolio would not fit the fund’s investment criteria or the timing of an increase in capital from the existing investor base.
We ran a targeted fundraising campaign process and identified two Middle-Eastern income-focused investors. We advised the manager on the investment process of these investors and their need for a Shariah-compliant vehicle for the acquisition.
We arranged the Shariah certification process and raised an initial equity investment of €25m for the sale and leaseback transaction, with a view to increase the allocation in conjunction with another sale and leaseback opportunity with the same anchor tenant.
Our client was able to source institutional capital from an investor which they would have otherwise not been able to close, and therefore strengthening their strategic relationship with a major tenant.
Case Study 2
In 2017, a Nordic logistics manager approached RAP to diversify the investor base for its funds. They had a long standing history with domestic investors, but had not marketed to investors outside their home market and wanted to gain access to institutional capital.
Fundraising was well underway when our engagement began, and it was expected that the fund would be oversubscribed by local investors. It was agreed with the manager that a small capacity would be reserved for a new foreign investor.
We ran a very targeted process with a shortlist of European LPs and with a 4 months window before final close.
The process was successful and allowed a new investor to commit to the fund. The investor is a high-profile investor, which is accretive to the credibility of the manager and which will pave the way for other foreign investors for for follow-on vehicles.
Case Study 3
In 2017, one of our clients approached us about a retail trophy asset that they had been managing a major German city centre. Their JV partner was looking to exit after a 10 year hold and our client was considering the sale of the property, which would have resulted in losing a prime retail asset producing steady income.
We advised the manager on a possible recapitalisation of the vehicle owning the asset. We ran a very targeted process on the back of which we selected two large European institutional investors to structure a club deal.
In the new set up, offering substantial tax savings for the new investors, the manager retained a 5% equity stake in the vehicle, while the two institutions committed to 47.5% of the equity each.
Our client was able to retain management of a Core-plus asset for the new investors for an additional 10 years, and the newly formed club has the potential pursue further investments into follow-on high-profile opportunities with the manager. Our client was able to add a new line of business for Core-plus institutional investors and source capital from high-profile institutions, without having to exit an asset and lose its management.