Hearthstone closes private equity fund with above target results

Hearthstone Investment Management Limited, an institutional investment manager specialising in UK residential property (private rented sector), has announced the final close above target of its 10 year closed-ended private equity fund, Hearthstone Residential Fund 1 (HRF1), with just over £200 million.

The Merseyside Pension Fund and the Tyne and Wear Pension Fund have joined as new limited partners in the final investment round bringing the total number of investors to seven UK local authority pension funds. The original first close investors were the Derbyshire Pension Fund, Nottinghamshire Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund, and the West Midlands Pension Fund.

Cllr Paul Doughty, Chair of Merseyside Pension Fund commented, “HRF1 has consistently delivered on its investment strategy focused primarily on new build housing and low-rise blocks of flats across the UK regions. Its objective is to build and manage to a high standard a portfolio of mainstream rental properties with the interests of tenants, their communities and institutional investors aligned. This is consistent with our objective to support needed housing development in the region.”