Newcore Capital has achieved a first institutional close for the latest fund within its flagship value-add series, Newcore Strategic Situations VI (NSS VI), raising £150m.
The close includes equity commitments from a large local government pension scheme (LGPS) pooled fund, a further direct LGPS scheme and a European fund-of-funds manager, with continued support from existing investors and the addition of two new institutional investors as limited partners in the fund series.
The closing means that NSS VI has £150m of investment capacity to deploy across opportunities in UK social infrastructure in sectors including healthcare, education, childcare, transport, waste management, energy and storage.
NSS VI is a close-ended vehicle with a fixed life span of seven years and has an equity hard cap of £300m. It is targeting final close by Q2 2027 and aims to deliver a net levered IRR to investors of 12% to 14% per annum, with a maximum leverage of 40% LTV.
Hugo Llewelyn (pictured), CEO of Newcore Capital, said: “We are delighted to announce the first institutional closing of NSS VI, in difficult capital raising markets. Our strategy aims to solve the shortage of capital available to improve and lease affordably the buildings and land critical for the dignified delivery of UK social infrastructure services. Our track record of strong, sustainable returns over the last 15 years and this successful first closing, supports our belief in the benefits of being a B Corporation.
“Our thesis is consistent: if you look after all your stakeholders in the capital management ecosystem in a responsible way, including the communities in which you work and the environment, you will do a lot better in the long-term for your investors and for yourselves. This has never been truer than in the current, volatile, geopolitical times.”
Tim Thorp, COO of Newcore Capital, added: “The first close for NSS VI, welcoming new and existing investors, reflects investor confidence not only in our value-add strategy, but also in our capital management capabilities given what continues to be a highly selective fundraising environment for real estate. Building on the strong performance of previous funds, we are pleased to bring together a group of like-minded investors to achieve a first institutional close for NSS VI.”
