19. Januar 2022
Peakside: PREF IV Fund to invest up to EUR 1.2 bn – Fund raising completed after only eleven months
- Well over 400 million euros in equity commitments
- Initial target (hard cap) exceeded by around 20 percent
- First transaction on behalf of the fund already signed
Zug, 19 January 2022 – At close to €415m of equity commitments, the Peakside Real Estate Fund IV (PREF IV), advised by Peakside Capital Advisors AG („Peakside“), closed capital raising earlier than planned. The fund was significantly oversubscribed after only eleven months of fundraising. Due to the massive interest by existing as well as new clients, the initial hard cap of €350m was raised by almost 20 percent. The full demand for subscriptions could still not be satisfied. Compared to its predecessor fund, the equity base of PREF IV has more than doubled. Peakside additionally noted binding commitments of co-investment capital in the double-digit million euro range. The capital mainly stems from institutional investors, sovereign wealth funds and family offices from Europe and the Middle East.
With a target debt ratio of around 60 percent, PREF IV will invest in real estate worth over €1.2bn. The focus lies on German properties which are affected by pricing dislocations, “stranded” in sales processes, have additional (re-)financing needs and on assets with value-add or conversion potential. That means the entire spectrum of asset classes is under consideration. Ticket size ranges between €30m and €200m. One acquisition for the fund has already been signed. Closing of the transaction is planned at the beginning of 2022.
Boris Schran, Managing Partner of Peakside, says: “Thanks to the strong team around Simon Lutz, the deal pipeline is well filled, and the fund already has several assets under exclusivity. We are close to the market and occupiers and thus especially looking at investment opportunities in logistics and residential. But we are also seeing several inroads into retail and hotel opportunities we can recommend to the fund, with a particular interest in assets that can be converted into office or residential use. We are confident that the fund will be closing further transactions within the first half of 2022.”
Stefan Aumann, Managing Partner at Peakside, says: “After its first closing in February last year, PREF IV was fully placed with investors within only eleven months – and that despite the COVID-19 pandemic. The speed with which that happened was indeed faster than we anticipated. Interest was enormous.”
Frank Schäfer, Managing Director and Head of Business Development at Peakside, adds: “Apart from the commitments of almost all our existing clients, we are proud to have attracted a large number of new investors for the fund. This is a testament to the excellent performance of the predecessor funds as well as the market penetration we have reached as Peakside at this stage.”
Peakside Capital Advisors AG is a European investment manager. The private-equity company manages assets worth over EUR 1.4 billion on behalf of institutional investors. Peakside implements differentiated investment strategies tailored to specific investor needs, ranging from core to value-add and opportunistic investments in commercial and residential assets and has in total acquired assets worth EUR 4.1 billion. Peakside’s investment spectrum includes single properties, developments as well as portfolios, distressed debt and real estate operating companies. The firm employs a team of more than 30 professionals in its offices in Frankfurt, Zug, Warsaw, Prague and Luxembourg.
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