Investment Strategies
Private Equity Real Estate
Structured Capital Solutions for European Real Estate
Nocturnal Capital Partners' real estate strategy focuses on providing structured equity and debt solutions for commercial properties across key European markets.
We target situations requiring sophisticated capital solutions, including recapitalisations, value-add transitions, development financing, and special situations. Our approach combines deep real estate expertise with the flexible capital approach that defines our broader investment philosophy.
Focus on German-Speaking Markets and Select Opportunities
We concentrate our real estate activities primarily in the DACH region — Germany, Austria, and Switzerland — with selective allocations to the United Kingdom and Nordic markets.
This geographic focus leverages our local market knowledge, relationship networks, and cultural fluency while avoiding the dilution that comes from pan-European strategies.
We particularly favor markets with strong demographic trends, economic diversification, and transparent regulatory environments.
Focused Strategies and Value-Added Transitional Assets
Value-Add and Transitional Asset Strategy
Our real estate investments typically target assets requiring active management, repositioning, or recapitalisation to reach their full potential.
We avoid core properties trading at compressed yields and instead focus on situations where our operational expertise can drive meaningful value creation through physical improvements, leasing strategies, operational efficiencies, or strategic repositioning in the market.
Structured Finance and Flexible Capital Solutions
We employ a versatile approach to real estate investing, utilising everything from common equity to structured debt, preferred equity, and mezzanine financing.
This flexibility allows us to craft bespoke solutions that address specific capital structure needs while optimising our risk-return profile.
Our ability to provide certainty of execution and sophisticated structuring has proven particularly valuable in complex situations with multiple stakeholders.
Sector Specialisation within Commercial Real Estate
Within the broader real estate universe, we focus on specific sectors where we possess deep expertise: office properties in prime German locations, logistics and industrial assets benefiting from e-commerce trends, residential development in supply-constrained markets, and specialised property types with high barriers to entry.
This sector specialisation enables more nuanced underwriting and value creation planning.
Hands-On Asset Management Approach
Our real estate investments benefit from active, hands-on asset management through both internal expertise and strategic operating partnerships.
We develop comprehensive 100-day plans and longer-term value creation strategies for each property, focusing on operational improvements, tenant retention and attraction, capital expenditure optimisation, and strategic repositioning where appropriate.
Disciplined Exit Timing and Execution
We maintain flexibility in our exit timing and approach, continuously monitoring market conditions and asset performance to identify optimal realisation opportunities.
Our exit strategies may include portfolio sales, individual asset dispositions, recapitalisations, or public market listings through REIT structures, always timed to maximise risk-adjusted returns based on asset-specific and market conditions.
