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PIMCO raises jumbo $5.5bn fund

The California-based firm has closed the Bank Recapitalization and Value Opportunities II fund (Bravo I) with a focus on real estate as it targets institutions looking to shed assets.

Pacific Investment Management Co (PIMCO) has closed a $5.5 billion fund seeking to buy assets from banks and other financial institutions, including real estate.

The Newport Beach, California-based company has held the close on The Bank Recapitalization and Value Opportunities Fund II (Bravo II) for which, among its targets, it plans to invest in commercial and residential property assets in the US and Europe that are unwanted by their current owners.

PIMCO was not willing to comment, but it was reported last year how the company was targeting around $4 billion from the fundraising effort – much more than the $2.35 billion PIMCO raised for predecessor fund Bravo I.

The fund is being managed by Dan Ivascyn, who recently got promoted to deputy chief investment officer at PIMCO after chief executive officer Mohamed El-Erian unexpectedly quit the company.

As revealed in an exclusive interview in the December issue of PERE, PIMCO manages some $15 billion of opportunistic real estate investments and has a dedicated team of 29 professionals in the US and Europe. The co-heads of real estate are former JER Partners professionals John Murray and Devin Chen. The head of Europe is former MGPA Europe chief Laurent Luccioni.

In the interview, talking of how and why he decided to join, Murray said he and the firm saw a “huge opportunity” opening up after the financial crisis. “PIMCO saw a tremendous opportunity to increase its global presence in commercial real estate,” he explained. “There was a global changing of the guard going on, with major banks, syndicators and private equity real estate firms either disappearing or completely paralyzed in terms of capital. That is really where the opportunity came about. I saw PIMCO’s advantage of having a huge platform to source opportunistic deals and capital, and I joined in 2009 to help build the business. Since then, we have brought in Devin, Laurent and 19 others.” The team reports to Ivascyn based in Newport Beach.

In minutes recorded from a meeting last year of the Arkansas Local Police and Fire Retirement System investment committee, the investor said the fund would aim for 40 percent residential exposure, 40 percent commercial, with a 20 percent allocation to special situations of distressed loans estimated to be $13 trillion in dimension. The investor agreed to invest around $10 million with an option to add more in 201, according to the minutes.
 Pacific Investment Management Co (PIMCO) has closed a $5.5 billion fund seeking to buy assets from banks and other financial institutions, including real estate.

The Newport Beach, California-based company has held the close on The Bank Recapitalization and Value Opportunities Fund II (Bravo II) for which, among its targets, it plans to invest in commercial and residential property assets in the US and Europe that are unwanted by their current owners.

PIMCO was not willing to comment, but it was reported last year how the company was targeting around $4 billion from the fundraising effort – much more than the $2.35 billion PIMCO raised for predecessor fund Bravo I.

The fund is being managed by Dan Ivascyn, who recently got promoted to deputy chief investment officer at PIMCO after chief executive officer Mohamed El-Erian unexpectedly quit the company.

As revealed in an exclusive interview in the December issue of PERE, PIMCO manages some $15 billion of opportunistic real estate investments and has a dedicated team of 29 professionals in the US and Europe. The co-heads of real estate are former JER Partners professionals John Murray and Devin Chen. The head of Europe is former MGPA Europe chief Laurent Luccioni.

In the interview, talking of how and why he decided to join, Murray said he and the firm saw a “huge opportunity” opening up after the financial crisis. “PIMCO saw a tremendous opportunity to increase its global presence in commercial real estate,” he explained. “There was a global changing of the guard going on, with major banks, syndicators and private equity real estate firms either disappearing or completely paralyzed in terms of capital. That is really where the opportunity came about. I saw PIMCO’s advantage of having a huge platform to source opportunistic deals and capital, and I joined in 2009 to help build the business. Since then, we have brought in Devin, Laurent and 19 others.” The team reports to Ivascyn based in Newport Beach.

In minutes recorded from a meeting last year of the Arkansas Local Police and Fire Retirement System investment committee, the investor said the fund would aim for 40 percent residential exposure, 40 percent commercial, with a 20 percent allocation to special situations of distressed loans estimated to be $13 trillion in dimension. The investor agreed to invest around $10 million with an option to add more in 201, according to the minutes.