King Street Closes EUR Real Estate Fund II at $950M
Funding | Jun 30, 2025 | PR Newswire Cision King Street Capital Management
King Street Capital Management, a global investment firm, announced the successful closure of its European Real Estate Special Situations Fund II (ESS II) with capital commitments totaling approximately $950 million, hitting its hard cap in just 12 months. ESS II focuses on acquiring institutional-grade assets in Western Europe, utilizing King Street's ability to invest across the capital structure to provide flexible financing solutions tailored to address market liquidity issues. A globally diverse investor base backed the fund, with significant re-ups from previous investors and interest from regions including North America, Europe, Asia, and the Middle East. The fund aims to target high-quality assets temporarily undervalued due to market stress, capital constraints, and illiquidity, presenting what King Street views as a generational opportunity in the European real estate market. The fund's closure signifies a milestone in King Street's ongoing expansion in real estate, with notable investments such as the Four Seasons Rome and the Bauer Hotel Venice.
Sectors
- Real Estate Investment
- Private Equity
Geography
- United Kingdom – The announcement was released in London, indicating significant interest or operations in the UK.
- Western Europe – The fund targets investments in core Western European markets.
- North America – Part of the investor base for the fund comes from North America.
- Asia – The fund attracted investors from the Asian region.
- Middle East – The fund was supported by investors from the Middle East.
Industry
- Real Estate Investment – The article focuses on a real estate investment fund that targets undervalued assets in the European property market.
- Private Equity – The announcement concerns a private equity firm, King Street Capital Management, closing a substantial real estate fund.
Financials
- ~$950 million – Total capital commitments for the European Real Estate Special Situations Fund II.
- $29 billion – Total assets under King Street Capital Management across various asset classes.
- $20 billion – Total transactions in real estate securities and related investments completed by King Street.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| King Street Capital Management | Investment Fund Manager | Company | A global alternative investment firm managing over $29 billion in assets, focusing on real estate and other special situations. |
| Brian Higgins | Founder and Managing Partner | Person | Founder and Managing Partner at King Street, commented on the fund's success and strategy. |
| Paul Brennan | Partner and Co-Head of Real Estate | Person | Partner at King Street responsible for leading the European real estate business. |
| Prosek Partners | PR Firm | Company | Public relations firm handling media contact for King Street. |