CONSHOHOCKEN, Pa., Jan. 24, 2025 /PRNewswire/ — CenterSquare Investment Management (CenterSquare) today announced results for the CenterSquare Value-Added Fund IV, L.P. (Fund IV or the Fund). The 2019 vintage Fund’s performance was at the high end of the 13-15% target range and in line with its predecessor fund, Value-Added Fund III.
CenterSquare’s data-driven portfolio construction, disciplined investment process, robust risk management, and active, hands-on asset management enabled the success of the Fund.
“A successful, full realization of the Fund within five years of most of the portfolio being constructed demonstrates our ability to identify assets with significant near-term value creation, execute our business plans, and minimize overall market risk,” said Jeffrey Reder, Managing Director for CenterSquare’s Private Equity Real Estate Vertical. “It is also a testament to our thematic approach to identifying sectors with strong, enduring tailwinds and ability to select the best individual property opportunities in those sectors.”
The Fund made over 70% of the investments in 2019 with a significant portfolio overweight to multifamily and industrial. Approximately 85% of the transactions were sourced off-market, serving as a testament to CenterSquare’s proactive approach to sourcing and depth of industry relationships. The portfolio leverage level was 45%, a reflection of their approach to generate returns by actively executing value enhancing business plans, not financial engineering.
CenterSquare ultimately committed 94% of the capital raised, electing to pause making new investments due to the onset of COVID-19. The Portfolio Managers recognized the potentially negative impact the pandemic could have on the portfolio and decided to maintain reserves to protect the existing investments until the future of the real estate market became clearer.
CenterSquare’s position as both a public and private real estate manager allows for regular collaboration among investment professionals that disseminates insights across the entire real estate landscape. This wide lens provides insight to the Value-Add Funds portfolio management team to improve their targeted acquisition efforts and make well-informed and timely disposition decisions in advance of significant shifts in market sentiment or fundamentals.
“We are proud of the results we delivered to our clients, particularly through the turbulent periods created by both the COVID-19 pandemic and the steepest, fastest interest rate rise in decades,” said CEO and CIO Todd Briddell. “Through volatility, we remained focused on the critical elements of our investment framework and ultimately created significant value for investors.”
About CenterSquare
Founded in 1987, CenterSquare Investment Management is an independent, employee-owned real asset manager focused on listed real estate, private equity real estate and private real estate debt. As a trusted fiduciary, our success is firmly rooted in aligning our interests with those of our clients, partners and employees. CenterSquare is headquartered in suburban Philadelphia, with offices in New York, Los Angeles, London and Singapore. With more than $13 billion in assets under management (December 2024), CenterSquare is proud to manage investments on behalf of some of the world’s most well-known institutional and private investors. For more information, please visit www.centersquare.com.
CenterSquare Media Contact:
Jansel Murad
Dukas Linden Public Relations
(646) 722-6537
jansel@dlpr.com
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SOURCE CenterSquare Investment Management
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