Acquisitive Palmer Capital has boosted its fund management business with the purchase of a specialist central and eastern European fund manager.
The venture capital and fund management firm has taken over Netherlands-based Middle Europe Investments, which has €232m of assets under management across nine funds.
The 100% buy-out of the troubled firm expands Palmer’s European coverage, adding offices in Holland, Russia, Bulgaria and Romania to its existing German and Czech Republic operations. It gives the firm a total of £750m assets under management.
MEI is invested mostly in office properties in the Czech Republic, but also in Slovakia, Bulgaria, Romania and Russia. Investors include private investors and family offices in Holland.
Palmer Capital Europe’s managing director, Guy Barker, who currently manages the firm’s €150m Belgravia European Property Fund and its €20m logistics counterpart, will oversee the expanded business, including the integration of 25 additional staff.
With his colleague, Ben Maudling, he will focus on expanding the flagship £77m Czech Offices Fund II and the €70m Middle Europe Real Estate fund, which is invested in high-yielding regional offices in Slovakia and the Czech Republic.
Barker said: “The acquisition opens new funding sources for us in the Dutch market, and gives us real depth in the fast- growing economies of CEE.”
He added that, over the medium term, Palmer might wind down some of the business’s sub-scale vehicles and return money to investors.
The deal came about following a falling out between the firm’s original partners, both of whom have now left the business. This led to an interim management team being put in place and a sale undertaken.
In January, Estates Gazette revealed that Palmer Capital had expanded into Asia when it bought a half-share in Hong Kong-based property investment management company Emboss Capital.
Bridget.oconnell@estatesgazette.com
