Slate Asset Management, a Canadian alternative investment firm targeting real assets, has closed its second opportunistic real estate fund, raising C$572 million. Slate Canadian Real Estate Opportunity Fund II exceeded its C$450 million target. It has made five investments to date, including participation in the acquisition of a portfolio of real estate loans, debt securities and equity positions from Annaly Capital Management for $2.33 billion in 2021.
Slate Asset Management Announces Final Close of Slate Canadian Real Estate Opportunity Fund II at $572 Million
April 26, 2022
TORONTO–(BUSINESS WIRE)–Slate Asset Management (“Slate”), a global alternative investment platform targeting real assets, today announced the final close of its Slate Canadian Real Estate Opportunity Fund II (“SCREO II” or “the Fund”) at approximately $572 million. The Fund targets opportunistic real estate investments across North America.
The final close significantly exceeded the Fund’s initial target of $450 million and is approximately twice the size of its predecessor vehicle, Slate Canadian Real Estate Opportunity Fund I (“SCREO I”). The Fund is backed by a well-diversified, global investor base consisting of equal part existing SCREO I investors and investors that are new to the Slate platform, including endowments, family offices, North American pension funds, a large and reputable German public pension fund, and clients of Townsend.
SCREO II provides investors with exposure to opportunistic investments across the North American real estate sector with a focus on cyclical investment opportunities, portfolio acquisitions and asset repositioning and redevelopment. The Fund has completed five investments to date, including participation in the acquisition of a portfolio of performing real estate loans, debt securities and real estate equity positions from Annaly Capital Management for US$2.33 billion in 2021.
“The global response to the Covid-19 pandemic has accelerated the significant disparity between price and value in the real estate industry, creating fresh opportunities for Slate to acquire assets and portfolios at an attractive cost basis,” said Blair Welch, Founding Partner at Slate. “Our focus on fundamental value has enabled us to capitalize on these opportunities and deliver returns that historically have outperformed benchmarks. We look forward to putting this fresh capital to work and leveraging our deep expertise to identify compelling investment opportunities that will create value for our investors.”
Jerry Cain, Managing Director on Slate’s Capital Raising team, added: “We are grateful for the trust and support of all the investors in this Fund and those who have trusted us through co-investment partnerships as well. Our ability as a firm to achieve such a successful capital raise is a testament to the confidence investors have in Slate. We recognize how important these relationships are to our business and look forward to deepening these partnerships as our business continues to grow.”
SCREO II is currently approximately 37 percent invested, subject to customary regulatory approvals, and has a strong pipeline of actionable deals.
About Slate Asset Management
Slate Asset Management is a global alternative investment platform targeting real assets. We focus on fundamentals with the objective of creating long-term value for our investors and partners. Slate’s platform spans a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus, and debt investments. We are supported by exceptional people and flexible capital, which enable us to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.