Paloma Capital raises largest-ever fund

Green Street News
,
Guy Montague-Jones

Fund has firepower to invest more than £400m as manager defies capital-raising gloom

  • What Paloma Capital raises more than £200m for third UK value-add fund
  • Why Existing and new investors back fund manager’s push into urban logistics, industrial, open storage and self-storage
  • What next New fund will have firepower to invest more than £400m with leverage

Paloma Capital has raised more than £200m for its third discretionary UK value-add fund, in its largest fundraise to date, Green Street News can reveal.

The final close for Paloma Real Estate III is just ahead of the £200m target and follows a first close of £80m at the end of 2022. Around 75% of the capital came from existing investors in Paloma’s previous funds, with the rest committed by three new investors.

The fundraise took place against the backdrop of an exceptionally tough period for raising capital.

The total amount of equity raised globally last year was the lowest since 2014, according to Prequin – and this year is on track to be little better. The amount raised for UK-only strategies has been particularly low, as investors gravitate towards larger pan-European or global funds and supplement this with exposure to more specialist strategies.