Portfolio Advisors closes $400m fund

The firm held a final close for its largest-ever real estate fund of funds.

Portfolio Advisors has closed its fifth real estate fund of funds, the firm said on Monday.

Portfolio Advisors Real Estate Fund (PAREF) V is the largest-ever real estate fund of funds for Portfolio Advisors. The firm closed the fund at $437 million, beating its $400 million target. PAREF IV closed in July 2011 with $400 million.

PAREF V launched in January 2013 with $50 million Portfolio Advisors has been actively investing the fund’s capital since its first close in 2013.

So date, globally, PAREF V has made nine primary fund commitments, purchased 21 partnership interests on the secondary market and participated in seven direct co-investments.

Portfolio Advisors will commit up to 2 percent to the fund, which has a 14 percent target return. About 80 percent of the fund’s commitments came from investors who have previously committed to Portfolio Advisors’ vehicles. These investors include Oklahoma Firefighters Pension & Retirement System, which put in $25 million to PAREF V, according to pension documents, and Philadelphia-area non-profit Connelly Foundation, according to the firm’s tax filings.

The fifth fund follows earlier investment strategies focused on opportunistic and value-added funds focusing on the office, residential, retail, hotel and assisted-living sectors as well as secondary fund interests. The commingled vehicle will also, to a lesser degree, target funds focused on self-storage and industrial warehouses to a lesser degree. PAREF V will emphasise investments in the US, western and central Europe and certain markets in Asia.

“We are very pleased and grateful for the continued trust and support of our investors, and remain committed to delivering attractive returns while prudently managing risk,” said Kenneth Wisdom, Portfolio Advisors’ head of real estate, in a statement.

This article was originally published in PERE.