The private equity real estate fund has overall target returns of 12-15% and a projected quarterly distribution of 4-5%
Singapore-based wealth firm Paragon Capital Management has raised close to $38 million in the first close of its global real estate fund, with real estate co-investment platform RealVantage as co-general partner. The Global Real Estate Alternative and Tactical Fund, or Great Fund, has a target fund size of $50 million. The global private equity real estate fund has hit 75% subscription within a month from launch.
The fund focuses on real estate investments with an overall target net internal rate of return of 12% to 15% over five years. It includes a projected quarterly distribution of 4-5%, and accesses real estate managers across Asia Pacific, the UK and US for equity, mezzanine and debt capital opportunities. It will invest primarily in industrial, logistics, residential, retail, office and hospitality sectors, while also seeking out distressed assets, given the pricing dislocations in office and retail sectors.
The fund will also allocate to development, upgrading and distressed property opportunities, as well as high-yielding debt opportunities, including senior and mezzanine loans, aiming for a 4 to 5% cash yield. It is set up by Paragon’s co-founder, CEO and CIO Paul Lee, and RealVantage’s CEO and co-founder Keith Ong. The investment commitment has Lee, Ong, and RealVantage chairman Beng Tiong Ng. Ong said, “Despite a challenging fundraising environment, Paragon Capital Management and RealVantage have been able to raise capital for the Great Fund within a matter of weeks.”
The real estate fund adds to Paragon’s range of funds, which includes global equities, fixed income and an early-stage VC fund. Under Paragon’s VCC, it runs three open-ended public market funds and two closed-ended private market funds. The firm recently recruited former MP Arthur Fong to lead the firm’s expansion into Hong Kong. Established in 2017, Paragon has assets under management in excess of S$1 billion ($739 million).
RealVantage was set up in 2019 and is a regulated fractional real estate investment platform. Its customers include family offices, high-net worth individuals, accredited and professional investors, as well as mass affluent investors.
