Pictet Alternative Advisors (PAA), the Pictet Group’s wholly owned alternative investment business, has announced the final close of its second flagship real estate co-investment fund at USD 362m, exceeding its target size of USD 300m.
The Monte Rosa Properties II fund, like its predecessor, offers exposure to global private real estate markets across all sectors, leveraging the team’s broad network of best-in-class managers. With a high conviction, thematic approach, the portfolio will comprise 15- 20 co-investments, with the possibility to add secondary transactions. Return generation will focus mostly on capital appreciation and value creation (value-add/opportunistic profile), with a minor contribution from the income-based component.
Monte Rosa Properties II seeks to benefit from the macrotrends that are reshaping the real estate markets, capturing the upside potential in niche and targeted sectors. With this approach, the portfolio will focus mainly on sectors driven by (i) consumer needs, such as logistics, data centers and residential, (ii) the transition towards a more sustainable property market as well as the renovation to more modern buildings such as offices and (iii) the distress and dislocation opportunities emerging from the current macroeconomic landscape.
Launched in September 2021, the fund closed at USD 362m, highlighting the strong investor appetite for this strategy. The fund is managed by the Real Estate Multi Manager investment team headed by Laurent Gabert, who brings 23 years of experience in real estate and private equity investing. The fund has already committed USD 82m across six separate transactions, all alongside some of the highest quality real estate managers globally.
A total of USD 618m has been raised across the two Monte Rosa Properties vintages so far, with the first fund closing on 256m in 2018.
Laurent Gabert said: “The recent geopolitical and economic shocks have destabilised markets, fuelling volatility and investors’ uncertainty. Paired with the imperative transition towards a more sustainable world and the increasing need for flexible and agile lifestyles, the current landscape has opened up for interesting investment opportunities in global property markets where the value creation and capital appreciation are at the core of return generation.
He adds: “The successful closing of our second real estate co- investment program highlights the ongoing commitment and trust from our existing and newly onboarded investors in an environment characterised by a slowdown in transactions and investor activity. We are very grateful and proud to rely on a diverse range of investors including clients from Pictet’s wealth management business alongside a range of institutional investors.Our focus will always remain client-centric to provide what we believe to be unique investment opportunities.”
