AXA Real Estate Investment Managers announces that it has raised on behalf of its clients a total of 1.26 billion in the first quarter of 2011. Reflecting a growing trend from investors seeking separate mandates, 800 million of this new equity has been raised as segregated accounts from third-party investors and AXA Group clients.
The 800 million of new equity for segregated accounts has been derived from new and existing investors across Europe, including France, Switzerland and the Nordics. Typically, these types of investors are seeking high-level, individually tailored solutions supporting their unique strategies, which enable them to benefit from AXA Real Estate's multi-disciplinary, confidential services and its extensive global asset and investment management platform. With over 29 billion of separate accounts under management as at December 2010, AXA Real Estate ranks respectively number one and number two globally for its advisory and discretionary mandates activities.
In addition, AXA Real Estate has raised a total of 460 million for two of its pan-European institutional investment vehicles, Development Venture III and its debt fund, Commercial Real Estate Senior 1, launched in January this year.
Kiran Patel, Global Head of Business Development, Distribution, Research & Strategy, commented: "The strong momentum we have achieved in securing new equity from investors this year is a strong endorsement of our barbell investment strategy and our ability to tailor products specifically for investors' individual needs.
"The fact that we have seen such strong interest from investors in both our debt and development funds in particular, reflects the increasing appetite since the start of this year for funds with strategies across the entire risk spectrum. Both of these funds are aiming to secure final closings before the summer. This will allow us to offer a new range of products which are innovative in structures, as well as investment strategies, not just covering Europe, but more further afield, Asia and US, thus building on AXA Real Estate's plans to offer a global product offering.
"We expect to continue to see this strong capital raising momentum for the remainder of the year, based on our discussions with investors in Europe, but also Middle Eastern and US investors looking to deploy capital in the global markets.
"As we emerge from the economic crisis, we are seeing a continued and evolving change in the way investors, particularly large institutions, approach investment opportunities. They are increasingly inquisitive about investment strategies and undertake significantly more due diligence than in previous times. Whilst this inevitably results in a longer time frame for capital raising, we believe it is a positive step, which is conducive to a closer, longer term relationship with our clients, one that also creates and forges a strong working partnership for a similar end ultimate goal."