BGO raises €2bn for value-add fund

Investment manager BGO has raised €2bn (£1.7bn) to invest in the living and logistics sectors. The value-add fund, BGO’s fourth, will also target assets that are “experiencing cyclical challenges that are impacting values”. BGO said it would seek to apply its local asset management expertise in key European markets to “transform under-valued or under-managed assets in well-established locations into high-quality investments with high stabilised yield on all-in cost”. John Carrafiell, co-chief executive of BGO, said its European value-add strategy, which has invested more than €4bn since 2014, had successfully navigated multiple cycles over more than a decade. He said the new fund was its largest raise yet and positioned it well to take advantage of current cycle. Toby Phelps, managing partner and head of European equity at BGO, added: “Our fourth European value-add strategy retains significant dry powder to capitalize on the strong opportunity in European real estate as markets enter a period of greater stability and growth prospects. “BGO’s differentiated deal flow, strong history of co-investments in sectors with long term growth prospects and our strong fiduciary mindset will continue to enable the successful growth of our European platform.”