CONSHOHOCKEN, PA — CenterSquare Investment Management has announced the performance results for its 2019 vintage CenterSquare Value-Added Fund IV, L.P. (Fund IV). The fund achieved returns at the high end of its 13-15% target range, mirroring the success of its predecessor, Value-Added Fund III.
The fund’s performance is attributed to CenterSquare’s data-driven portfolio construction, disciplined investment process, and hands-on asset management. “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 of CenterSquare’s Private Equity Real Estate Vertical.
Fund IV concentrated its investments in high-growth sectors, with over 70% of allocations made in 2019 and a focus on multifamily and industrial properties. Approximately 85% of transactions were sourced off-market, reflecting the firm’s proactive sourcing and strong industry relationships. The portfolio’s leverage was maintained at 45%, emphasizing value enhancement through strategic execution rather than financial engineering.
When the COVID-19 pandemic emerged, CenterSquare paused new investments and safeguarded existing ones with a prudent reserve strategy. This decision underscored a commitment to risk management while navigating an uncertain real estate market.
CenterSquare leveraged its position as both a public and private real estate manager, utilizing collaboration across verticals to identify market trends and optimize timing for acquisitions and sales. “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 Todd Briddell, CEO and CIO of CenterSquare. “Through volatility, we remained focused on the critical elements of our investment framework and ultimately created significant value for investors.”
Thematic investment strategies and disciplined asset selection were key to Fund IV’s achievements. This approach, along with CenterSquare’s track record for identifying sectors with robust tailwinds, positioned it to generate exceptional returns even amid market challenges.
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