Key Takeaways
- • CenterSquare Investment Management announced results for CenterSquare Value-Added Fund IV, L.P., a 2019 vintage fund whose performance landed at the high end of its 13-15% target range.
- • The Fund's returns were in line with its predecessor, Value-Added Fund III, and the Fund has been fully realized within roughly five years of most of its portfolio being built.
- • The portfolio carried a significant overweight to multifamily and industrial real estate, with about 85% of transactions sourced off-market and portfolio leverage at 45%.
- • CenterSquare committed 94% of capital raised, pausing new investments in 2020 due to COVID-19 and holding reserves to protect existing assets.
- • CenterSquare reports more than $13 billion in assets under management as of December 2024.
Summary
CenterSquare Investment Management has announced the results of CenterSquare Value-Added Fund IV, L.P. (Fund IV), according to a PR Newswire release issued January 24, 2025. The 2019 vintage fund delivered performance at the high end of its 13-15% target range and matched the results of its predecessor, Value-Added Fund III. The firm attributed the outcome to its data-driven portfolio construction, disciplined investment process, risk management and hands-on asset management.
The fund made more than 70% of its investments in 2019, with a notable overweight to multifamily and industrial real estate. Approximately 85% of transactions were sourced off-market, which the firm cited as evidence of its proactive sourcing and industry relationships. Portfolio leverage was 45%, which the firm characterized as a reflection of returns driven by value-enhancing business plans rather than financial engineering.
CenterSquare ultimately committed 94% of the capital raised. The firm paused new investments after the onset of COVID-19, with portfolio managers maintaining reserves to protect existing holdings until the outlook for the real estate market became clearer. The release highlights the firm's position as both a public and private real estate manager, which it says informs acquisition targeting and disposition timing.
Jeffrey Reder, Managing Director of CenterSquare's Private Equity Real Estate Vertical, said the full realization of the fund within five years demonstrates the firm's ability to identify assets with near-term value creation while minimizing market risk. CEO and CIO Todd Briddell said the team delivered results through the COVID-19 pandemic and the steepest interest rate increases in decades. CenterSquare, founded in 1987 and headquartered in suburban Philadelphia, is an employee-owned real asset manager with offices in New York, Los Angeles, London and Singapore.
The fund made more than 70% of its investments in 2019, with a notable overweight to multifamily and industrial real estate. Approximately 85% of transactions were sourced off-market, which the firm cited as evidence of its proactive sourcing and industry relationships. Portfolio leverage was 45%, which the firm characterized as a reflection of returns driven by value-enhancing business plans rather than financial engineering.
CenterSquare ultimately committed 94% of the capital raised. The firm paused new investments after the onset of COVID-19, with portfolio managers maintaining reserves to protect existing holdings until the outlook for the real estate market became clearer. The release highlights the firm's position as both a public and private real estate manager, which it says informs acquisition targeting and disposition timing.
Jeffrey Reder, Managing Director of CenterSquare's Private Equity Real Estate Vertical, said the full realization of the fund within five years demonstrates the firm's ability to identify assets with near-term value creation while minimizing market risk. CEO and CIO Todd Briddell said the team delivered results through the COVID-19 pandemic and the steepest interest rate increases in decades. CenterSquare, founded in 1987 and headquartered in suburban Philadelphia, is an employee-owned real asset manager with offices in New York, Los Angeles, London and Singapore.
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