PW Real Assets is to make a first close of €900m (£633m) for its first fund since separating from parent Perella Weinberg in July.
Launched in spring this year, PW Real Estate Fund III will be managed by veteran investor and former Unibail Rodamco chief executive Leon Bressler.
It has increased the size of its final target size to €1.5bn, up from €1.2bn. It is the largest raised by the spun-off team, and one of the largest European-focused funds raised this cycle.
With an expected gearing of 55%-60% the fund will have firepower of as much as €3.7bn.
Like Perella’s two previous funds, PW REF III will pursue a strategy of opportunistic investing in non-core assets across the UK, France, Spain and Germany, plus up to 35% of equity available for “non-core” Europe such as Ireland.
The successful raising of a third fund is a show of faith in the team following its separation from the Perella Weinberg platform.
Many investors in the new independent fund are those that put equity into funds I and II, including the New Jersey Division of Investment, which followed investments in both with a $100m (£66m) commitment to Fund III.
Bressler is committing €17m of his own capital and three other partners in the firm have each committed €1m, according to documents published by the New Jersey Division of Investment.
The two previous funds provided IRRs of 15% and 21% which have helped attract investors back. For returning investors PWRA has also offered reduced management costs.
PWRA declined to comment.
