KKR, TPG Plan Real-Estate Funds

Mar 14 2013 | 1:24pm ET

Two major private equity firms are set to launch their first dedicated real-estate funds.

Kohlberg Kravis Roberts and TPG Capital Management hope to raise a combined $1.5 billion or more for the funds. Both are gearing up for a fundraising push, with KKR committing a significant amount of firm capital to the new venture and TPG eyeing the second quarter to begin marketing the fund.

TPG’s real-estate fund looks to be the larger of the two, with a target of at least $1 billion—which would make it the second-largest property fund ever, The Wall Street Journal reports. And while TPG will not shy away from traditional real-estate fund strategies, such as buying up distressed properties, it will also seek to take a more private-equity approach to the space, buying whole property companies and large portfolios of buildings.

“We combine sound property capabilities with corporate-style investing, which TPG has significant expertise in,” Kelvin Davis, head of TPG’s real-estate group, told the Journal.

For its part, KKR plans to launch its fund with $500 million in initial capital. The firm has been investing in real estate for two years, but the new fund will be its first investing exclusively in the space.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...