Real Estate Investment Strategies
PIMCO BRAVO Fund III
Fund Summary
Sector:
Strategy:
Sub-Strategy:
Special Situations
Cross Asset
Global Cross Asset
Firm Overview
PIMCO (the "GP") is one of the largest investment management firms in the world with approximately $1.5
trillion in assets under management and 2,220 employees. The majority of its assets are run in its traditional
fixed income strategies though the GP also has meaningful businesses in alternatives, equities and real
return strategies. PIMCO was founded by Bill Gross and others in 1971 in Newport Beach as a subsidiary of
Pacific Life Insurance Company, managing separate accounts for the firm's institutional clients. From its
founding through the 1990's PIMCO was primarily focused on managing traditional fixed income funds and
accounts. In 2000, it was purchased by Allianz but continued to operate as a mostly autonomous entity,
expanding its alternatives investment management business starting in 2002 with the launch of a macro
relative value strategy.
General Partner
Sector
Strategy
Sub-Strategy
Main Office
Geography
Target Size
Management Fees
Carried Interest
Closing Schedule:
Investment Period
Extensions
Harvest Period
Extensions
Fund Summary
PIMCO
Special Situations
Cross Asset
Global Cross Asset
New York
Global
$3-4 billion target ($5 billion hard cap)
1.5% on invested capital
20%
November 18, 2016: $820 mm
December 30, 2016: $380 mm
March 24, 2017: TBD
3 years (final close)
None specific
PIMCO
Special Situations
Strategy
PIMCO's BRAVO investment strategy is among the more recent strategies launched at PIMCO with BRAVO
I having first launched in 2011. The first fund had been launched to take advantage of NPL sales and bank
recapitalization opportunities (BRAVO is an acronym for "bank recapitalization and value opportunities").
The second fund was then launched in 2013 with a shift in mandate towards securities, specialty finance
and performing assets and the GP is currently raising PIMCO BRAVO Fund III ("BRAVO III") with an even
greater focus on specialty finance and asset backed originations.
BRAVO III has a broad strategy that seeks to invest across a wide range of asset types across public and
private markets and geographies. The strategy will target opportunities across residential real estate,
commercial real estate, specialty finance and other financials. PIMCO does not expect there to be a material
exposure to non-financial corporates. While BRAVO III may invest in distressed assets, the majority of
exposure is expected to be to performing assets generating a high-single digit or greater unlevered yield.
PIMCO intends to use a variety of financing structures to leverage performing assets (loans/securities) to
produce a base-level of no loss IRR. The GP's investments in real estate private equity and specialty finance
equity will typically target meaningfully higher IRRs relative to its securities/loan portfolio.
IDD:
ODD:
January 2017
January 2017
PRIVATE & CONFIDENTIAL
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