Benson Elliot announces oversubscribed final close of debut real estate fund

€335 million platform for Marc Mogull, former Doughty Hanson
real estate head, is one of Europe’s largest independent start-ups

29 August 2006 — Benson Elliot Capital Management (“Benson Elliot” or the “Firm”) announced today the final close of Benson Elliot Real Estate Partners II, L.P. (“BEREP” or the “Fund”), with investor commitments of over €335 million.  The closing, at a level above the firm’s €300 million target, marks a return to the European investment scene for Marc Mogull, founder and former head of Doughty Hanson & Co European Real Estate.

Benson Elliot launched fundraising for the Fund in April of this year, achieving an initial close, at over €200 million, in just seven weeks.  The speed at which the Firm has been able to raise one of the largest private equity real estate funds ever for a start-up independent manager is a reflection of Mr. Mogull’s track record, his experience building market-leading teams and his stature within the investor and investment communities.

The Fund’s twenty institutional investors, from Europe, North America and the Middle East, include pension funds, foundations, endowment funds, family offices and funds of funds.  Several of the Firm’s cornerstone investors have backed Mr. Mogull in the past.  Amongst first time supporters much of the capital committed originates from within Europe.

Susan Meaney, Partner of Makena Capital Management, one of the top money management firms in the United States and an investor in the Fund, said:  “We like Marc’s investment approach and value his experience, integrity and judgement.  We’ve also been impressed by his determination to limit the size of the Fund and to structure the Firm and the Fund as a true partnership amongst manager, investors and an outstanding team.  He and his team are in this for the long haul.”

Benson Elliot has made a series of announcements in recent weeks as it assembles a team of top investment talent, with a proven track record of sourcing and managing investments in the middle market.  Amongst the senior professionals who have already joined Benson Elliot are:

	Trish Barrigan, previously Managing Director and Head of Global Real Estate for the Dubai Investment Group.  A 10-year Goldman Sachs veteran, Ms Barrigan was a key part of the team that built the Whitehall Funds’ franchise in Europe
	Philip Irons, previously Head of Transactions (Direct Property) at Schroders Property Investment Management and, prior to that, Head of Acquisitions and Disposals at Benchmark plc, the listed UK property company
	Leopoldo Andreis de Gregorio, previously Vice President and Director of Lehman Brothers Real Estate Partners, and that fund’s senior executive in Italy
	Jeremy Hussey, previously Chief Financial Officer of AIG Global Real Estate Investment (Europe) and, prior to that, Chief Financial Officer of Pelham Partners

The Firm has also assembled an impressive team of strategic advisers, who will provide contacts, expertise and guidance in markets across Europe.  The principals and strategic advisers together have committed over €7 million to the Fund.

Commenting on the launch of Benson Elliot, Marc Mogull said:  “Having enjoyed a long track record of investment success and market-leading returns, I’m excited by the prospect of establishing my own franchise and replicating that success with the exceptional team we’ve assembled around this fund.  With the support of our cornerstone investors, and what I believe is the best professional talent in the business, we can create the leading mid-market private equity real estate platform in Europe.”

“This firm and this fund reflect a vision of how the real estate private equity industry needs to evolve to meet future challenges – management owned, sensibly sized, and with the interests of the Fund’s investors, the firm and the team aligned.”

“The events of the last year, leaving Doughty Hanson, setting up Benson Elliot and now closing our first fund, have been exhilarating.  With the Firm and the Fund now up and running, the Firm’s principals look forward to delivering superior returns to our investors, year in and year out, through the inevitable ups and downs of the property cycle.”

BEREP, a ten-year fund, will follow the disciplined, asset-driven investment approach established and successfully executed by Mr. Mogull at Doughty Hanson.  The Fund’s team will target complex transactions in the European middle-market (total transaction value of €25 - €250 million), seeking assets across Europe that offer the potential for superior risk-adjusted returns through active and innovative investment management. The Fund will acquire completed properties as well as funding development.

The Fund will be distinctive in not having a single return target.  Benson Elliot believes that arbitrary return hurdles can distort investment analysis, encourage excessive risk taking, and increase overall fund risk. The Firm’s risk-based approach to capital pricing will enable it to seek superior returns for investors through investment cycles, allowing Benson Elliot to adapt investment strategy and tailor risk exposure in the face of changing market conditions.

Benson Elliot’s decision to cap subscriptions to the Fund at a level well below indicative demand reflects the Firm’s determination to remain selective in making investments, to be more involved in seeing through individual value-added strategies and to maximise net returns to investors.