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""Valeo Fund"":http://www.valeofund.com/default.html, a private equity fund based in Dallas, is being introduced to investors in the United States, Europe, and Latin America who are seeking to invest in the pending recovery in the U.S. commercial real estate (CRE) market.
[IMAGE]""What we found from our investor relationships is growing interest by international and domestic investors who are recognizing the value in U.S. commercial real estate as it gets re-priced,"" said Fred Hamm, a Valeo Fund co-founder. ""These investors also have a greater amount of trust in the long term security and stability of the United States.
Between 2010 and 2013, nearly $1 trillion in CRE loans will mature in the United States, and analysts at ""Deutsche Bank"":http://www.db.com/index_e.htm estimate that approximately $370 billion will not qualify for refinancing, creating attractive opportunities for investors. Valeo Fund offers investors the opportunity to take advantage of these conditions and intends to invest in U.S. CRE assets that may be too large for individual investors and too small for institutional investors.
""The fund is designed for the sophisticated investor seeking to participate in the coming opportunities in U.S. commercial real estate but who does not want to make direct investments or be part of a much larger institutional fund,"" Hamm added. ""We have limited the size of the fund to ensure we are focused on the longer term capital preservation, cash flow, and capital appreciation goals of our investors.""
Through both international and domestic investors, Valeo Fund intends to raise $150 million in equity, which, with moderate leverage, will provide it with buying power in excess of $300 million. The fund will target U.S. real estate assets in demand-driven and supply-constrained markets in the $15 million to $55 million range, focusing on specific product types, such as office, medical office, retail, and debt instruments secured by these classes of real estate.
