King Street Capital Management has successfully rounded off fundraising for its newest European real estate venture, pulling in a hefty $950m (€807.4m) for its European Real Estate Special Situations Fund II, better known as ESS II.

The fund, which wrapped up at its hard cap within just a year, has drawn backing from a wide mix of global investors spanning North America, Europe, Asia, and the Middle East. Notably, half of the capital committed to ESS II has come from investors already familiar with the firm—either from its earlier ESS fund or from other King Street real estate vehicles.

ESS II is targeting opportunities in Europe’s property market where traditional financing remains thin on the ground. The fund is set to focus on acquiring high-calibre, institutional-grade assets currently going for less than their worth—not because of problems with the properties themselves, but due to the present market’s lack of liquidity.

Brian Higgins, founder and managing partner at King Street, remarked: “The strong investor demand for ESS II reflects confidence in King Street’s ability to deliver innovative financing solutions in a market where transparency and liquidity remain scarce. Amid historic dislocation, we see a clear path to recovery and believe ESS II is well-positioned to capitalise on a generational opportunity in European real estate.”

Paul Brennan, partner and co-head of real estate who steers the firm’s European operations, added: “Our strategy focuses on the intersection of quality and complexity, providing capital solutions for trophy assets trading below intrinsic value due to market stress. As traditional lenders pull back and capital remains scarce, we’re able to deploy flexible capital and access landmark assets through proprietary, off-market channels.”

With this fresh round of capital in hand, King Street appears ready to make its move in Europe’s property scene, zeroing in on markets like the UK, France, Germany and others where dislocation is rife but quality opportunities remain.