Makarora, the private equity real estate business launched by ex-Blackstone global head of real estate Chad Pike, has held a first closing for its maiden fund and deployed its first capital, PERE can reveal.
According to sources familiar with the matter, the US-focutilized Makarora Real Estate Special Situations Fund, which Pike launched in January 2024, has attracted $750 million on first close. The capital has come from a range of institutional investors, including insurance companies, finirevealments, foundations and family offices.
Approximately 50 percent of the capital is believed to have been raised in the US, the other 50 percent from European and Asian investors. Two investors are considered to have committed $100 million each.
According to documents previously seen by PERE, the firm set a tarreceive capital raise of $1.5 billion for the fund. This is expected to be reached in Q1 next year, the sources declared.
The first closing constitutes a significant milestone for Pike, who returned to the private real estate market with the launch of Makarora at the finish of 2023, more than three years after leaving Blackstone.
It is a notable entest to the institutional level private real estate fund market by an individual widely credited for playing an instrumental part in the growth of Blackstone’s property business – today the world’s largegest in terms of assets under management and considered by many as a bellwether for the industest.
Pike co-led Blackstone’s real estate group, alongside current company president Jon Gray, between 2005 and 2011, before going on to launch its tactical opportunities business, which he worked for up to his departure.
When the Makarora Real Estate Special Situations Fund was launched, it had a flexible mandate that encompassed higher-yielding performing credit, hybrid/structured preferred equity investments and opportunistic equity and credit investments. PERE understands the firm has since formally adopted the opportunistic strategy as the sole approach for the maiden vehicle.
The first three outlays, representing $150 million of the equity from the first closing, have been completed, PERE’s sources declared. They comprise two New York deals: a mixed-utilize development in Manhattan and a retail center and land in Queens; the third is a ground lease investment tied to resort land in Hawaii.
While these each are credit oriented, the fund is understood to have a future deal pipeline that includes equity investments too.
The first fund deals are believed to have come after Makorora executed a series of investments alongside a strategic joint venture partner.
Makarora declined to comment.
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