This article is from the Australian Property Journal archive
THE Lowy family backed investment house, Assembly Funds Management (AFM), is looking to raise up to $100 million for the second close of the next fund in its Private Equity Real Estate series, ADPF2.
The fund completed its first close at the end of 2023, having raised more than $115 million with around 50% of this initial equity expected to be committed into attractive investments largely in the living sector.
With AFM having already deployed more than 80% of the $350 million ADPF1, with the balance expected to be invested by the end of FY 2024/25.
“The investment strategy for the ADPF series has proven to be attractive to investors due to its ability to invest across sectors either in debt or equity,” said Michael Gutman, CEO at AFM.
“In particular, it provides the flexibility to weight towards the sectors where we see the greatest operational tailwinds.”
AFM’s Private Equity Real Estate series is targeting investment into high returning opportunities arising out of market dislocation and cyclical and structural changes across subsectors.
Around $200 million of ADPF1 fund equity has now also been successfully recycled from debt and equity investments at the target return.
ADPF2 reports a target equity size of $350 million with a hard cap of $500 million.
“We would expect to see a rebalancing from debt to more equity transactions as the interest rate reduction cycle progresses, improving the risk return profile for equity over debt,” added Gutman.
AFM now controls circa $600 million of equity across the funds and institutional co-investment and has completed 27 transactions of over $600 million to date.
