EQT Exeter Industrial Core-Plus Fund IV closes at USD 3.0 billion, exceeding target size of USD 2.5 billion
Exceptional demand from existing and new investors led to the Fund being significantly oversubscribed
With EQT Exeter’s over 1,200 business-to-business tenant relationships, the Fund will serve the supply chain real estate needs of established, global tenants, with a focus on Class A, single-tenant big box distribution, fulfillment center, last mile logistics properties, and industrial service facilities (ISFs)
The successful fundraise reflects EQT Exeter’s proven and sustained outperformance for its global clients in industrial real estate
EQT is pleased to announce that EQT Exeter Industrial Core-Plus Fund IV (the “Fund”) has held its final close at USD 3.0 billion in equity commitments. Demand from existing and new investors was exceptional, resulting in the Fund being oversubscribed with commitments coming from a diversified group of valued investors across North America, Europe, Asia and the Middle East.
With its focus on Class A, single-tenant big box distribution, fulfillment center, last mile logistics properties, and ISFs, the Fund will serve the supply chain real estate needs of established, global tenants who look to EQT Exeter to provide repeat real estate solutions around the world. In doing so, the Fund seeks to provide stable cash flow for its investors by acquiring high occupancy, long term leased industrial assets. In our view, the Fund is also poised to generate growth in capital values due to extraordinary rental rate growth in the industrial sector.
With consistent top ventile (5%) returns in the Cambridge Associates benchmarks for value funds1 and top quartile returns in the Preqin benchmarks for core/core-plus funds2, EQT Exeter is one of the leading global industrial investment managers. Over the last 15 years, the Firm has closed 900 industrial investments, leading to industrial assets under management as of 30 June 2022, that total nearly USD 30 billion in gross asset value.
This sustained outperformance is driven by EQT Exeter’s over 375 employees, across more than 50 offices in 20 countries, whose local-with-locals approach provides a keen selection of submarkets and properties, and whose insights into tenant demand are informed by over 1,200 tenant relationships cultivated for a decade and a half. We believe that the Fund’s closed-end structure and EQT Exeter’s vertical integration, with deep roots in design and development, allow the Fund to select the most functional, modern investments, and conversely avoid the obsolescence often embedded in open-end alternatives.
Gardner Ellner, Brian Serpico, and Tom Meehan are Portfolio Managers of the Fund. Ellner commented, “With our strong history of a hands-on approach to leasing, tenant relationships and asset management, we believe that EQT Exeter’s 24 local teams are better positioned than ever to identify and execute on attractive core-plus investments as we navigate the risks and opportunities of the current capital markets environment.”
Ward Fitzgerald, Head of EQT Exeter, said, “I would like to thank our existing and new investor partners for their support of EQT Exeter’s US industrial core-plus fund series. When also considering the recent close of our US Office Life Science Value Fund II, these successful fundraises enable us to secure the benefits of scale for our clients: helping our investor clients build a diversified real estate portfolio of which these funds are a component, and offering our tenant clients comprehensive real estate solutions across property types. Most importantly however, we know in this tumultuous cycle of inflation, our clients’ beneficiaries – retirees, teachers, police, fire, and medical workers, and civil servants need increased performance of their pensions to pay bills and live without anxiety. We look forward to continuing to serve our customers as one of the highest-performing real estate investment managers in the world.”
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