NEW YORK CITY—Cerberus Capital Management said Tuesday it had closed on its fourth global opportunistic real estate fund, Cerberus Institutional Real Estate Partners IV LP. At $1.8 billion, it's the largest opportunistic real estate vehicle for Cerberus to date.
As with its predecessor funds, CIREP IV will pursue an investment strategy focused on distressed or otherwise undervalued real estate transactions globally, with a focus on the US and Western Europe. The fund received commitments from more than 60 investors, including sovereign wealth funds, public pension plans, corporate plans, insurance companies, endowments, foundations and high net worth individuals.
Among these, according to PERE, were the Florida State Board of Administration, which agreed to invest $200 million during the fourth quarter of 2015; San Francisco Employees' Retirement System, which committed up to $100 million for its first participation in Cerberus' real estate platform; the Oklahoma Police Pension & Retirement System, which designated $15 million last March; and the Texas Permanent School Fund, which pledged up to $75 million this past July.
Reportedly launched in Q2 of '15, CIREP IV follows on its predecessor by a little more than three years; CIREP III closed in October 2013 at $1.426 billion. Senior managing director Kravit cites the “experienced investment team” at Cerberus, noting that the firm has been “successfully investing in distressed and opportunistic real estate assets for over 20 years. We look forward to deploying CIREP IV and generating attractive returns to our investors.”
According to Evercore's recent European Distressed Real Estate Market report, Cerberus was the most active buyer of commercial and residential mortgage and non-performing loan portfolios and distressed real estate in Europe in 2016. The firm achieved similar distinctions in 2014 and '15. Cerberus accounted for 19% of European closed volume last year, acquiring €9.4 billion, or approximately US$10.1 billion, of secured real estate loans.
Hodes Weill Securities acted as global placement agent for CIREP IV. Axius Partners Pty Ltd. provided representation in Australia.
As with its predecessor funds, CIREP IV will pursue an investment strategy focused on distressed or otherwise undervalued real estate transactions globally, with a focus on the US and Western Europe. The fund received commitments from more than 60 investors, including sovereign wealth funds, public pension plans, corporate plans, insurance companies, endowments, foundations and high net worth individuals.
Among these, according to PERE, were the Florida State Board of Administration, which agreed to invest $200 million during the fourth quarter of 2015; San Francisco Employees' Retirement System, which committed up to $100 million for its first participation in Cerberus' real estate platform; the Oklahoma Police Pension & Retirement System, which designated $15 million last March; and the Texas Permanent School Fund, which pledged up to $75 million this past July.
Reportedly launched in Q2 of '15, CIREP IV follows on its predecessor by a little more than three years; CIREP III closed in October 2013 at $1.426 billion. Senior managing director Kravit cites the “experienced investment team” at Cerberus, noting that the firm has been “successfully investing in distressed and opportunistic real estate assets for over 20 years. We look forward to deploying CIREP IV and generating attractive returns to our investors.”
According to Evercore's recent European Distressed Real Estate Market report, Cerberus was the most active buyer of commercial and residential mortgage and non-performing loan portfolios and distressed real estate in Europe in 2016. The firm achieved similar distinctions in 2014 and '15. Cerberus accounted for 19% of European closed volume last year, acquiring €9.4 billion, or approximately US$10.1 billion, of secured real estate loans.
Hodes Weill Securities acted as global placement agent for CIREP IV. Axius Partners Pty Ltd. provided representation in Australia.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
