Goldman Sachs Asset Management has used its Vintage-series secondaries funds to help buy property developer TriGranit from TPG’s real estate arm.
Sister publication PERE reported in May that Revetas was leading a club of investors in the acquisition of the Budapest-based developer from private equity giant TPG Real Estate. Terms of the transaction were not disclosed, but the deal is understood to be valued at approximately €300 million, PERE reported.
The deal marks the last capital commitment for London-based Revetas’s second fund and the first for Revetas Capital Fund III. The latest fund has raised approximately €60 million from existing investors against a target of €350 million. The predecessor fund, Revetas Capital Fund II, is currently projecting gross IRRs of 24 percent and an equity multiple of 2.1x, PERE understands.
Goldman’s latest secondaries vehicle, Vintage Fund VII, beat its $5 billion target to close on $7.12 billion, according to PEI data. The firm also has a 2015-vintage $568 million fund named Vintage Real Estate Secondary Strategy, and had a “tactical tilt” to real estate in its 2012-vintage Vintage VI Fund “due to supply/demand imbalance and recovering real estate fundamentals”, according to an investment document for its Vintage VII fund obtained by Secondaries Investor.
Revetas has investors which have made fund and co-investment commitments in both Revetas Funds II and III. Goldman Sachs, which could not be reached for comment, invested through its Vintage funds, which focus on the secondaries market for private equity, according to Revetas’s announcement.
“What is interesting here is some of the biggest institutional investors are getting access to the region through us,” Revetas founder and managing partner Eric Assimakopoulos said, adding Revetas had previously invested alongside groups including New York-based firms Cerberus Capital Management.
Assimakopoulos noted that having major private equity players diligence Revetas’s deals adds “a level of comfort” to the deal-making process.
“It aligns our capital base because they’re an investor,” he said. “We work hand-in-hand with professionals who have a tremendous amount of experience. We believe these partnerships are very strong because of the ability to leverage that experience to, at the end of the day, deliver better returns for everyone.”
– Adam Le contributed to this report.