DOCSLIB.ORG

The Fundraising Supplement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Fundraising Supplement december / january 2013 / 14 privatedebtinvestor.com the FundrAising suppleMent Private debt funds set the pace Sponsors: First Avenue MAcfarlAnes expertise in Credit Funds if you would like further information or specific advice please contact: alex amos damien Crossley Bridget Barker partner partner partner DD: +44 (0)20 7849 2554 DD: +44 (0)20 7849 2728 DD: +44 (0)20 7849 2495 [email protected] [email protected] [email protected] Macfarlanes LLP 20 Cursitor Street London EC4A 1LT T +44 (0)20 7831 9222 F +44 (0)20 7831 9607 DX 138 Chancery Lane www.macfarlanes.com Private debt investor - PDI - fundraising supplement - Nov 2013v2.indd 1 21/11/2013 16:43:25 the fundraising supplement | december/january 2013/14 editorial comment ISSN 2051-8439 At the forefront of the cycle editor, private debt investor Oliver smiddy Tel: +44 20 7566 4281 [email protected] Dear Reader, an allocation come from a fixed senior staff Writer Welcome to the Private Debt Investor income bucket, or an alternatives sam sutton Tel: +1 212 633 1456 Fundraising Supplement. one? The answer to that question [email protected] Earlier this year, we published our inevitably varies, but it points to advertising manager beth piercy inaugural PDI 30 – a list of the top 30 the need for managers to have a Tel: +44 20 7566 5464 [email protected] private debt managers based on the clear idea of how they want to head of production amount of capital raised in the past five position their fund. tian mullarkey Tel: +44 20 7566 5436 years. The total amount raised by those Generating momentum in a [email protected] firms in that timeframe – $322 billion – is, as fundraise is key to success. Hitting a first close subscriptions fran hobson (london) +44 20 7566 5444 First Avenue founder Paul Buckley acknowl- early, possibly via a sizeable cornerstone commit- jill garitta (new york) +1 212 645 1919 ryan ng (hong Kong) +852 2153 3140 edges in our interview on page 8, “a really big ment, allows a GP to deploy capital and demon- For subscription information visit www.privatedebtinvestor.com number for a new asset class”. strate to potential investors that the model works. editorial director Our in-house data show there are more than Thanks to the characteristics of debt investing philip borel Tel: +44 207566 5434 200 funds targeting combined commitments of – with assets yielding income from the start in [email protected] $114 billion out in market at the moment. The many cases – it’s possible to demonstrate the abil- research and analytics dan gunner data pages at the back of this supplement show ity to generate a return far quicker than with a Tel: +44 20 7566 5423 [email protected] that the featured funds closed this year which private equity fund, for example. publishing director total $64 billion. For a relatively nascent asset Structuring a fund appropriately is a key paul mclean Tel: +44 20 7566 5456 class, that’s an impressive number. decision too, as Macfarlanes pair Alex Amos and [email protected] There are plenty of challenges for firms look- Damien Crossley note in their piece on page 12. group managing director tim mcloughlin ing to raise capital however. A lucky few have the But there’s undoubtedly a secular shift hap- Tel: +44 20 7566 4276 [email protected] brand name and pedigree to attract commit- pening, playing very much in private debt’s favour. managing director – americas ments with relative ease. Just look at the amount Capital is being reallocated from sovereign and john higgins, [email protected] of capital raised by the likes of Oaktree Capital public corporate credit and into the private arena managing director – asia Management this year, or the inexorable growth at an increasing pace as investors hunt yield. Other chris petersen, [email protected] of GSO, which has outstripped The Blackstone alternative asset classes are undergoing a period of co-founders Group’s core private equity business in assets consolidation.With skill, and plenty of persever- david hawkins [email protected] under management. ance, private debt fund managers will find them- richard O’donohoe [email protected] But for aspiring managers in particular, fun- selves at the forefront of this fundraising cycle. neW YorK draising is a long and thankless task. While some 16 West 46th Street, 4th Floor New York investors have taken a progressive view of the We hope you enjoy the supplement, NY 10036-4503 asset class and have discrete allocations to private LondOn 140 London Wall debt, many struggle to pigeon-hole it. Should Oliver Smiddy, Editor London EC2Y 5DN Hong KOng 14/F, Onfem Tower 29 Wyndham Street Central, Hong Kong CONTENTS 12 the right structure © capital structure investor LLP 2013 No statement in this magazine is to be construed 2 news round-up Macfarlanes’ Damien Crossley and Alex Amos dis- as a recommendation to buy or sell securities. cuss the key considerations when choosing the most Neither this publication nor any part of it may The biggest stories in private debt fundraising be reproduced or transmitted in any form or by from around the globe. appropriate structure for a private debt vehicle. any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without the prior permission of the publisher. Whilst every effort has 8 a front row seat 14 data room been made to ensure its accuracy, the publisher and contributors accept no responsibility for the PDI interviews First Avenue founder Paul Buckley PDI’s research and analytics division brings you accuracy of the content in this magazine. Readers should also be aware that external contributors and hears why private debt will be at the forefront the biggest LP commitments to private debt this may represent firms that may have an interest in companies and/or their securities mentioned in of this and future fundraising cycles. year, and a selection of fund closes. their contributions herein. december/january 2013/14 | Private Debt Investor 1 neWs news round-up FUNDRAISING: PRIVATE cORPORATE DEBT The firm’s Private Market Credit Strategies 2013 vehicle will capitalise on the current senior secured debt market opportunity resulting from constrained banks, expiring European CLOs and the demand for refinancing, it added. It is the firm’s third PMCS fund. Private debt is one of Partners’ core strategies alongside private equity, private real estate and private infrastructure, with the firm having adopted a progressive approach to the asset class. This latest vehi- cle has an “investor friendly” investment structure, according to the firm, with a englightenment focuses on the aerospace and defence sectors quick ramp-up period of 12 months. The firm has invested in more than AEROSPACE AND DEFENCE “TPG has been a long-term invest- 40 leveraged loan deals so far this year. enlightenment raises ment partner of the WSIB,” the spokes- $41m for fund i person said in an email. “Since 2000, DISTRESSED DEBT Enlightenment Capital has raised more the Board has committed in excess of american securities than $41 million for its Enlightenment $2 billion to seven TPG-sponsored invest- within reach of $750m Capital Solutions Fund I. ment vehicles, including, most recently, target Enlightenment is targeting $100 mil- $200 million to TOP II in 2012 and TGP American Securities, led by senior part- lion for the fund, which the firm will Growth II in 2011.” ners Anthony Grillo and Lawrence First, use to make senior debt, mezzanine and TPG is targeting $2.65 billion for is within reach of its $750 million target minority equity investments in the aero- the fund. Pennsylvania Public School for its third opportunities fund. space, defence and government sector, Employees’ Retirement System docu- The firm raised at least $725.1 mil- firm co-founder Devin Talbott told PDI. ments describe Fund II as specialising in lion for the vehicle as mid-November, Talbott, a former vice president at DE corporate special situations, distressed according to an SEC filing. The fund will Shaw, founded Enlightenment in 2012 debt and non-performing loans. invest between $20 million and $100 alongside Pierre Chao, a co-founder TPG Opportunities II had generated million per deal in companies with of aerospace, defence and government an 18.01 percent net internal rate of revenues in the $100 million and $1.5 sector due diligence firm Renaissance return and 1.1x multiple as of 30 June, billion range. Strategic Advisors. The pair launched the according to Washington documents. The Los Angeles City Employees’ firm to target investment opportunities Retirement System committed $30 created by the withdrawal of traditional LEVERAGED lOANS million to the vehicle earlier this year. lenders and banks from the mid-market partners group raises A Hamilton Lane report suggests the loan business, which led to a supply/ $800m for private debt firm may raise as much as $1 billion demand imbalance for capital. Switzerland-headquartered Partners for the distressed debt fund. The vehi- Group has raised more than $800 mil- cle will include a commitment of up to DISTRESSED DEBT lion for its leveraged loans program this $20 million from the GP, according to Washington backs TPG year, it said today in a statement. Its the report. Opportunities III third leveraged loans fund accounts for The firm’s 2010 vintage opportuni- The Washington State Investment Board about two thirds of that amount, with ties fund had generated a 14.18 per- has approved a $200 million commitment separate account mandates accounting cent net internal rate of return as of 31 to TPG Opportunities III according to an for the remaining third, according to a March, according to a Public Employee investment board spokesperson.
Load more

Recommended publications
  • Krause Fund Research Spring 2020
    Krause Fund Research Spring 2020 The Carlyle Group (CG) April 14, 2020 Stock Rating HOLD Financial Services – Alternative Asset Management Analyst Target Price $25 - 27 Justin Koress Krause Fund DCF Model $27 [email protected] Relative P/E Ratio (EPS20) $21 Relative P/B Ratio $25 Investment Thesis Price Data Current Stock Price $22.68 We recommend a HOLD rating for The Carlyle Group because of its diversified 52Wk RanGe $15.21 - $34.98 investments within key drivers in the Asset Management industry, such as Key Statistics corporate private equity, with an emphasis to capitalize on the ESG investment Market Cap (B) $7.90 trend. However, CG’s use of leverage will expose them to extreme risks associated Shares OutstandinG (M) 348.23 with COVID-19. Five Year Beta 1.77 Current Dividend Yield 4.17% Drivers of Thesis Price/EarninGs (TTM) 8.04x Price/EarninGs (FY1) 13.98x • With private capital dry powder at a record $2.3 trillion dollars, Profitability alternative managers will be able to create high-quality investments at Profit MarGin 35.07% distressed valuations in response to COVID-19. Return on Equity (TTM) 39.88% Return on Assets (TTM) 17.15% • CGs management team has a proven track record in locating Debt to Equity Ratio 365.01% companies that weather economic downturns, providing tremendous investment opportunities in a destabilized market. 25.00 • The alternative asset management business is intensely competitive, with competition based on a variety of factors, including investment 20.00 performance, a record number of private investment funds, and lack of 19.00 20.28 investor liquidity due to COVID-19.
    [Show full text]
  • Sangeeta Bhatia, Retirement Plan Manager Subject: Board Agenda Item
    CITY OF LOS ANGELES DEPARTMENT OF WATER AND POWER INTERDEPARTMENTAL CORRESPONDENCE Date: August 18, 2010 To: Retirement Board Members From4?Sangeeta Bhatia, Retirement Plan Manager Subject: Board Agenda Item No.9: Presentation of New Investment Opportunities by Courtland Partners; Discussion and Possible Action (August 25, 2010, Regular Retirement Board Meeting) Representatives from Courtland Partners, the Plan's real estate consultant, are presenting two investment opportunities for the Retirement Fund and the Retiree Health Benefits Fund. Presentation material from Courtland and from Lone Star Funds is enclosed. Also enclosed are two resolutions to approve the investments, should the Board decide to do so. SB:jae 9.1 RESOLUTION NO. 11-16 RESOLUTION TO INVEST IN LONE STAR FUND VII WHEREAS, the Board of Administration (Board) for the Water and Power Employees' Retirement Plan (Plan) previouslyadopted a 5% allocation to the Real Estate asset class for the Retirement Fund (RF) and the Retiree Health Benefits Fund (RHBF) at the regular Board meeting held on January 16, 2008 (Board Resolution No. 08-49); and WHEREAS, representatives from Courtland Partners, the Plan's real estate consultant, recommend a total commitment of up to $10 million ($9 million from the RF and $1 million from the RHBF) to Lone Star Fund VII (Lone Star VII), a closed end commingled fund focused on opportunistic real estate and debt/loan investments; and WHEREAS, the final closing for Lone Star VII is anticipated to be in the Fall of 2010. NOW, THEREFORE, BE IT RESOLVED, the Retirement Plan Manager is hereby authorized to prepare and submit subscription documents for Lone Star VII pending legal review, and if the subscription documents are accepted by Lone Star, to proceed with the implementation of funding a commitment up to $10 million ($9 million from the RF and $1 million from the RHBF).
    [Show full text]
  • TRS Contracted Investment Managers
    TRS INVESTMENT RELATIONSHIPS AS OF DECEMBER 2020 Global Public Equity (Global Income continued) Acadian Asset Management NXT Capital Management AQR Capital Management Oaktree Capital Management Arrowstreet Capital Pacific Investment Management Company Axiom International Investors Pemberton Capital Advisors Dimensional Fund Advisors PGIM Emerald Advisers Proterra Investment Partners Grandeur Peak Global Advisors Riverstone Credit Partners JP Morgan Asset Management Solar Capital Partners LSV Asset Management Taplin, Canida & Habacht/BMO Northern Trust Investments Taurus Funds Management RhumbLine Advisers TCW Asset Management Company Strategic Global Advisors TerraCotta T. Rowe Price Associates Varde Partners Wasatch Advisors Real Assets Transition Managers Barings Real Estate Advisers The Blackstone Group Citigroup Global Markets Brookfield Asset Management Loop Capital The Carlyle Group Macquarie Capital CB Richard Ellis Northern Trust Investments Dyal Capital Penserra Exeter Property Group Fortress Investment Group Global Income Gaw Capital Partners AllianceBernstein Heitman Real Estate Investment Management Apollo Global Management INVESCO Real Estate Beach Point Capital Management LaSalle Investment Management Blantyre Capital Ltd. Lion Industrial Trust Cerberus Capital Management Lone Star Dignari Capital Partners LPC Realty Advisors Dolan McEniry Capital Management Macquarie Group Limited DoubleLine Capital Madison International Realty Edelweiss Niam Franklin Advisers Oak Street Real Estate Capital Garcia Hamilton & Associates
    [Show full text]
  • 3/9/2016 Regular Meeting
    Oregon Investment Council March 9, 2016 - 9:00 AM PERS Headquarters 11410 S.W. 68th Parkway Tigard, OR 97223 Katy Durant Chair John Skjervem Chief Investment Officer Ted Wheeler State Treasurer OREGON INVESTMENT COUNCIL Agenda March 9, 2016 9:00 AM PERS Headquarters 11410 S.W. 68th Parkway Tigard, OR 97223 Time A. Action Items Presenter Tab 9:00-9:05 1. Review & Approval of Minutes Katy Durant 1 February 3, 2016 OIC Chair Committee Reports John Skjervem Chief Investment Officer 9:05-9:50 2. Lone Star Real Estate Fund V Tony Breault 2 OPERF Real Estate Portfolio Senior Investment Officer Austin Carmichael Investment Officer John Grayken CEO and Founder Nick Beevers Managing Director Christy Fields Pension Consulting Alliance 9:50-10:35 3. Brookfield Infrastructure Fund III, LP Ben Mahon 3 OPERF Alternatives Portfolio Senior Investment Officer Sam Pollock Senior Managing Partner & CEO, Infrastructure Group Chris Harris Senior Vice President, Client Relations Tom Martin TorreyCove 10:35-10:45 -------------------- BREAK -------------------- Katy Durant Rukaiyah Adams Rex Kim John Russell Ted Wheeler Steve Rodeman Chair Vice Chair Member Member State Treasurer PERS Director OIC Meeting Agenda March 9, 2016 Page 2 10:45-10:55 4. OPERF Real Estate Portfolio Tony Breault 4 Policy and Benchmark Update Christy Fields David Glickman Pension Consulting Alliance 10:55-11:05 5. Oregon Local Government Intermediate Fund Tom Lofton 5 Policy Update Investment Officer Kristin Dennis OST Legislative Director B. Information Items 11:05-11:25 6. OPERF Q4 2015 Performance & Risk Report Karl Cheng 6 Investment Officer Janet Becker-Wold Callan Uvan Tseng Callan Alan McKenzie Blackrock Tony Vorlicek Blackrock 11:25-11:45 7.
    [Show full text]
  • LAZARD GROUP LLC (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2008 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 333-126751 (Commission File Number) LAZARD GROUP LLC (Exact name of registrant as specified in its charter) Delaware 51-0278097 (State or Other Jurisdiction of Incorporation (I.R.S. Employer Identification No.) or Organization) 30 Rockefeller Plaza New York, NY 10020 (Address of principal executive offices) Registrant’s telephone number: (212) 632-6000 Securities Registered Pursuant to Section 12(b) of the Act: None Securities Registered Pursuant to Section 12(g) of the Act: None Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
    [Show full text]
  • Meet Our Speakers
    MEET OUR SPEAKERS DEBRA ABRAMOVITZ Morgan Stanley Debra Abramovitz is an Executive Director of Morgan Stanley and serves as Chief Operating Officer of Morgan Stanley Expansion Capital. Debra oversees all financial, administrative, investor relations and operational activities for Morgan Stanley Expansion Capital, and its predecessor Morgan Stanley Venture Partners funds. Debra also serves as COO of Morgan Stanley Credit Partners. Debra joined Morgan Stanley’s Finance Department in 1983 and joined Morgan Stanley Private Equity in 1988, with responsibility for monitoring portfolio companies. Previously, Debra was with Ernst & Young. Debra is a graduate of American University in Paris and the Columbia Business School. JOHN ALLAN-SMITH Barclays Americas John Allan-Smith leads the US Funds team for Corporate Banking at Barclays and is responsible for coordinating the delivery of products and services from our global businesses; ranging from debt, FX solutions, cash management and trade finance, to working capital lending and liquidity structures. John joined Barclays in 2014 and has 20 years of experience in the funds sector. Prior to joining Barclays, John worked at The Royal Bank of Scotland (RBS) in London, Stockholm and New York, spending 10 years in the RBS Leveraged Finance team. Subsequently, John had responsibility for the portfolios and banking sector of the Non-Core division of RBS in the Americas. John holds an ACA qualification from the Institute of Chartered Accountants of England and Wales and is a qualified accountant. He also has a BSc (Hons) in Chemistry from The University of Nottingham. ROBERT ANDREWS Ashurst LLP Robert is a partner in the banking group at Ashurst and is one of the most experienced funds finance specialists in Europe.
    [Show full text]
  • Did Lone Star Funds Buy a Loan Shark?*
    December 2014 A report by UNITE HERE Contact: Elliott Mallen [email protected] 312-656-5807 Did Lone Star Funds buy a Loan Shark?* As institutional capital flows into private debt at a record pace, is Lone Star Funds’ acquisition of payday lender DFC Global outside of investors’ comfort zones? As banks and other traditional fnancial institutions globally have been required to strengthen their balance sheets following the fnancial crisis and subsequent regulatory changes, a growing number of fund managers and a wave of institutional capital have sought to fll the gap. Data provider Preqin Ltd. reported that private debt funds had raised a total of $77 billion in 2013.1 At the same time, an improving economy and a decline in corporate defaults has meant that distressed debt managers have had to search harder for deals.2 Lone Star Funds, a Texas-based institutional investment manager, has pursued a strategy of buying up distressed residential and corporate debt.3 As of September 2014, Lone Star topped the PDI 30 ranking of private debt investors.4 In July 2014, Lone Star closed its Lone Star Fund IX at $7.3 billion.5 But as Lone Star looks to deploy this capital as well as its $7 billion Lone Star Real Estate Fund III (closed October 2013), the manager’s April 2014 $1.3 billion acquisition of payday lender and pawnshop operator DFC Global raises questions about whether the current scarcity of distressed deals has forced Lone Star to look for deals in places outside of some of its LPs’ comfort zones.
    [Show full text]
  • Private Equity
    Kuwait Financial Centre “Markaz” P R I V A T E E Q U I T Y U P D A T E Private Equity Month End February, 2008 Market Trends Private Equity update: Compiled from various public - The Private Equity market in 2008 has started off slow, with no sources expectation to pick up quickly. The sluggish start was expected for 2008, so this doesn’t come as a surprise to investors. Total leveraged buy-out volume so far in 2008 is down to $34 billion, two-thirds of the volume at this time the previous year. A single mega-deal from 2007 eclipses the total buy-out volume for 2008. While the level of activity has been slow-moving, the industry is still sitting on $820 billion of uncalled capital from investors. The average size of buy-outs this year, $120 million, is the lowest since 2001. - For the average private equity firm, about 38 individuals are employed for every $1 billion of assets under management, and this number decreases to 15 or less at many of the larger firms. With this type of a work force, it will prove influential since $10 billion buy-outs occur daily. However, if the investors deploy the funds across an array of smaller deals, it will result in longer waiting periods, as well as smaller returns. - Investors in the real estate market in 2008 are the most optimistic, due to predictions of higher or the same returns for this year. Investors intend on using the same type of strategy for deals in 2008.
    [Show full text]
  • Reverse Convertible Notes Linked to Blackstone Group
    Structured Products Research Report Report Prepared On: 12/14/12 Structured Product Details Reverse Convertible Notes linked to Blackstone Group Name Reverse Convertible Notes linked to Blackstone Group Description HSBC issued $784,000 of Reverse Convertible Notes linked to Blackstone Group on Issue Size $784,000 October 31, 2007 at $1,000 per note. Issue Price $1,000 Term 6 Months These notes are HSBC-branded reverse convertibles. Reverse convertibles pay periodic Annualized Coupon 11.50% interest coupons and at maturity convert into shares of the reference security if the price of the reference stock at the notes’ maturity is below its price when the notes were issued Pricing Date October 26, 2007 and had closed below a specified “trigger” during the term of the notes. Issue Date October 31, 2007 Valuation Date April 25, 2008 April 30, 2008 These 6-month notes pay monthly coupons at an annualized rate of 11.50%. In addition Maturity Date to the monthly coupons, at maturity on April 30, 2008 investors will receive the mar- Issuer HSBC ket value of 39.08 shares of Blackstone Group’s stock if on April 25, 2008 Blackstone CDS Rate 43.4 bps Group’s stock price closes below $25.59 (Blackstone Group’s stock price on October 26, Swap Rate 4.78% 2007) and had ever closed at or below $17.91 during the term of the notes. Otherwise, investors will receive the $1,000 face value per note. Reference Asset Blackstone Group’s stock Initial Level $25.59 Valuation Trigger Price $17.91 This HSBC reverse convertible linked to Blackstone Group’s stock can be valued as a Conversion Price $19.20 combination of a note from HSBC and a short down-and-in, at-the-money put option on Dividend Rate 0.00% Blackstone Group’s stock.
    [Show full text]
  • 260412 REF Blackstonelogistics FINAL
    Press Release Consortium provides £204 million financing to support Blackstone UK logis- tics acquisition • pbb Deutsche Pfandbriefbank, HSBC Bank plc and Wells Fargo pro- vide a senior facility • LaSalle Investment Management provides a mezzanine loan support- ing the acquisition Munich/London, 26 April 2012 - pbb Deutsche Pfandbriefbank, HSBC Bank plc and Wells Fargo have jointly provided senior financing for the acquisition of a port- folio of distribution warehouses located across the UK by the Blackstone Group. In addition, LaSalle Investment Management, on behalf of its Junior Loan Pro- gramme, has provided mezzanine financing to to support the acquisition. The total senior and mezzanine financing amount provided was £204 million. The transac- tion closed on 18 April 2012. pbb Deutsche Pfandbriefbank, HSBC Bank plc and Wells Fargo acted as Joint Arrangers and Underwriters. pbb Deutsche Pfandbriefbank is the Facility Agent and Security Agent to the senior facility. The portfolio comprises 17 distribution assets located across the UK. Together they provide circa 3.6 million sq ft of space. The transaction is a continuation of Blackstone’s strategy of investing in high quality logistics properties in the United Kingdom. Bernhard Scholz, the Management Board member of pbb Deutsche Pfand- briefbank, Matthew Webster, Global Head of Real Estate Finance, HSBC, and Chip Fedalen, Group Head, Wells Fargo Commercial Real Estate - Institu- tional and Metro Markets commented on behalf of the senior lenders: “Black- stone is a core client of the senior lending group and we are happy to work with them alongside LaSalle Investment Management. We are excited about future op- portunities to support our clients doing business and appreciate working with our co-lenders.” Amy Klein Aznar, Head of Special Situations and Structured Investments, LaSalle Investment Management, said: “LaSalle is delighted to have provided Blackstone with mezzanine debt financing on this transaction and to have success- fully structured the facility together with pbb, HSBC and Wells Fargo.
    [Show full text]
  • Real Estate Alert’S 22Nd Annual Review of Closed- End Commingled Funds That Seek Yields of at Least 10% by Investing in Com- Mercial Real Estate
    SPECIAL REPORT Fund Managers Flush With Capital, but Not Opportunities Capital, capital everywhere, but no place to invest. Number of Active Funds That’s the quandary facing managers of high-yield real estate funds. 488 466 466 By any measure, their industry is booming, with both the number of vehi- 445 427 429 425 440 cles and the amount of equity commitments at record levels. But finding suit- 415 406 able investments for all that capital is becoming harder and harder, because the long-running bull market has driven valuations sky-high. As a result, fund managers are lowering their return goals and sitting on an unprecedented hoard of uninvested capital. Those are key findings ofReal Estate Alert’s 22nd annual review of closed- end commingled funds that seek yields of at least 10% by investing in com- mercial real estate. The review identified a record 488 active vehicles, up 5% from 466 a year ago. Those funds are managed by a record 392 operators, up from the previous high of 374 last year. They have set an aggregate $339.9 billion equity goal and 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 have already raised $261.3 billion of that amount (or slightly more than three- quarters) — also new highs. But a whopping 72% of those commitments, or $186.9 billion, is still unin- vested. That tally is up 14% from a revised $164.5 billion of dry powder last Uninvested Equity ($Bil.) year and nearly double the $97.9 billion level in 2015. 187 164 The reason why is no mystery: Fund managers see fewer opportunities that 161 fit their return goals.
    [Show full text]
  • Private Equity Giants Converge on Manufactured Homes
    PRIVATE EQUITY GIANTS CONVERGE ON MANUFACTURED MASSIVE INVESTORS PILE INTO US MANUFACTURED HOME COMMUNITIES Within the last few years, some of the largest private equity firms, HOMES real estate investment firms, and institutional investors in the How private equity is manufacturing world have made investments in manufactured home communi - ties in the United States, a highly fragmented industry that has homelessness & communities are fighting back been one of the last sectors of housing in the United States that has remained affordable for residents. February 2019 In 2016, the $360 billion sovereign wealth fund for the Govern - ment of Singapore (GIC) and the $56 billion Pennsylvania Public KEY POINTS School Employees Retirement System, a pension fund for teachers and other school employees in the Pennsylvania, bought a I Within the last few years, some of the largest private equity majority stake in Yes! Communities, one of the largest owners of firms, real estate investment firms, and institutional investors manufactured home communities in the US with 44,600 home in the world have made investments in manufactured home sites. Yes! Communities has since grown to 54,000 home sites by communities in the US. buying up additional manufactured home communities. 1 I Manufactured home communities provide affordable homes for In 2017, private equity firm Apollo Global management, with $270 millions of residents and are one of the last sectors of affordable billion in overall assets, bought Inspire Communities, a manufac - housing in the United States. Across the country, they are home tured home community operator with 13,000 home sites. 2 to seniors on fixed incomes, low-income families, immigrants, Continued on page 3 people with disabilities, veterans, and others in need of low-cost housing.
    [Show full text]