Värde beats target with almost $2.5bn raised

The Minneapolis-based manager surpassed a $2bn target for its 13th fund which will focus on ‘pockets of distress around the world’.

Värde Partners, the Minneapolis-based fund manager, has raised $2.47 billion at the final close of its 13th flagship fund. The vehicle had set out to raise $2 billion.

Värde Fund XIII will invest in credit and credit-related assets globally across liquid traded credit, special situations, real estate and financial services.

The firm said it expected investment opportunities to be driven by systemic distress factors, including financial systems with high levels of non-performing loans and cyclical opportunities associated with industry or economic downturns.

Ilfryn Carstairs, Värde’s global co-chief investment officer said: “Against a backdrop of intense economic uncertainty, there are several significant pockets of distress around the world today, and we expect that opportunity to grow over the investment period of the fund.”

Värde, which was established in 1993, manages more than $14 billion on behalf of global investors and operates from 13 offices around the world including in New York, London and Singapore. As well as its flagship funds, it has targeted investment strategies focused on Asia, Europe, mortgages, private debt, real estate and speciality finance. Co-founders Marcia Page and George Hicks are still with the firm as executive chair and chief executive officer respectively.

The firm wrapped up its previous flagship vehicle, Värde Fund XII, on $1.74 billion in March 2017. The fund had posted a 10.8 percent net internal rate of return as of 30 June 2019, according to documents from the Florida State Board of Administration, which committed $200 million to the vehicle.