JP Morgan Asset Management is fund raising for its first pan-European opportunistic fund since 2005. The US bank’s subsidiary has concentrated on core-style investing since 2009.
2.5bn, mainly for two sovereign wealth funds, in a handful of large deals including the HSBC headquarters in Canary Wharf.
However, the team, which is headed by Peter Reilly and head of acquisitions Bradley Larsen, believes the time is right to move back into opportunistic investing in Europe.
The fund’s capital raising target is thought to be £500m. This would make it larger than Fund 2, which was raised in 2005 with a club of five investors.
Reilly and head of strategy Joe Valente produced a report last month called Carpe Diem – Seize the day, which said 2013 was “an inflection point” and that investors’ risk appetite was starting to return.
Valente said he could not comment on plans for any fund. But he believed there had been “a dramatic change”. Public pension plans and endowments are said to be looking at this style of investing again.
The second fund has a German office deal under offer – its eighth acquisition. It also has a ninth transaction lined up, which will be its last.