Oct 17 (Reuters) - Private equity firm BC Partners is seeking to raise about 700 million euros ($775 million) for its first European real estate fund, people familiar with the matter said on Thursday.
The fund, BC Partners European Real Estate I, will acquire real estate assets in some of Europe’s largest cities, including London, Paris, Berlin and Madrid, according to the company’s website. The targeted size of the fund had not been previously disclosed.
The sources asked not to be identified because the matter is confidential. A spokeswoman for BC Partners declined to comment.
The fundraising comes after Blackstone Group Inc, the world’s largest private equity firm with $154 billion in real estate assets under management, bought a minority stake in BC Partners in August.
It also comes amid strong investor appetite for private equity funds, allowing them to raise large amounts of capital despite growing concerns of an economic recession driven by escalating U.S.-China trade tensions and other geopolitical turmoil such as Brexit.
Real estate-focused private equity funds raised $124 billion from investors in 2018, the sixth consecutive year such funds have collectively raised more than $100 billion, according to data provider Preqin’s latest report on the private equity real estate market.
BC Partners launched its real estate investment effort last year to diversify from its private equity and credit businesses. The buyout firm later hired three senior executives from French property firm Altarea Cogedim to run the new business, BC Partners Real Estate.
Based in London, BC Partners has $24 billion in assets under management spread across healthcare, financial services, and industrials in Europe and North America. BC Partners’ portfolio companies include Petsmart, a Phoenix-based pet products retail store chain, and Chewy Inc, an online pet food retailer based in Dania Beach, Florida. It also has a stake in cable provider Altice USA. (Reporting by Chibuike Oguh in New York Editing by Tom Brown)