PIMCO has come even closer to hitting its multibillion fundraising goal for its opportunistic BRAVO Fund III, which garnered at least $440 million in commitments over the last few months.
The Newport Beach, California-based asset manager held a fourth close on a minimum of $2.69 billion for the vehicle, regulatory filings with the US Securities and Exchange Commission showed. BRAVO Fund III held a third close on $2.25 billion in May.
The new capital commitments bring the global fund closer to the $3 billion-$4 billion target range with a hard-cap of $5 billion, according to documents from the New Mexico State Investment Council, which committed $100 million.
The firm declined to comment on the fund.
The fund is focused on residential and commercial real estate and specialty finance.
“While BRAVO III may invest in distressed assets, the majority of exposure is expected to be to performing assets,” a SIC investor presentation read.
BRAVO Fund III has a management fee of 1.5 percent on invested capital and a carried interest fee of 20 percent. The vehicle has a three-year investment period with a seven-year term from final close, with two possible one-year extensions. Fund III targets a net internal rate of return of 14-16 percent and a 1.7x to 1.9x multiple on invested capital, net of fees.
The BRAVO vehicle’s predecessors, Fund I and Fund II, held final closes on $2.35 billion and $5.5 billion, respectively. Fund II showed a net IRR of 12.3 percent between its 2013 inception, while Fund I showed a net IRR of 22.4 percent between its 2011 launch, both figures as of 31 December.
In addition to the BRAVO funds, PIMCO has managed several other opportunistic funds, including Distressed Mortgage Fund I and Fund II, Distressed Senior Credit Opportunities I (DiSCO I) and a Term Asset-Backed Securities Loan Facility (TALF), the SIC documents also showed.
The 2008-vintage $2.87 billion DMF I and 2009-vintage $610 million DMF II posted net IRRs of 9.1 percent and 35.4 percent, respectively, from inception to 31 December. The $2.68 billion DiSCO I fund, also a 2008 vintage vehicle, listed an 11 percent net IRR, while that figure for TALF, another 2009 fund, was 34.3 percent – both figures as the end of 2016.