Avatar Capital Partners Secures USD 156m First Close for Japan Living Fund II
Asia-based alternative asset manager Avatar Capital Partners (ACP) has raised US$156 million in the first close of its second fund, Fund II, which targets US$300 million for investments in Japan’s residential sector. The capital raise is anchored by a joint commitment of up to US$100 million from GCM Grosvenor and the Teacher Retirement System of Texas (TRS).
Under the agreement, TRS and GCM Grosvenor’s real estate practice—a middle-market platform builder and GP stakes investor—will serve as both anchor investors in Fund II and strategic partners supporting ACP’s institutional expansion. Chicago-headquartered GCM Grosvenor (Nasdaq: GCMG) oversees approximately $97 billion in assets across alternative investment strategies.
Fund II is structured to target off-market opportunities across Japan’s living sector. According to ACP, the strategy is underpinned by favorable demographic trends, sustained rental demand, accelerating rental growth, and an attractive financing environment in Japan.
The first close follows the rapid deployment of the firm’s predecessor vehicle. Fund I closed in July 2025 with US$105 million, was fully deployed within 12 months of its final closing, and has completed five exits to date. Led by Founding Partners Angel Li, Ryuta Ueda, and Ronald Chiu—who have worked together since 2010—ACP manages capital on behalf of institutional investors and family offices and has built a multifamily portfolio with a gross asset value of nearly US$850 million.
ACP Founding Partner Angel Li stated that the backing from GCM Grosvenor and TRS serves as an endorsement of the firm’s strategy and a key milestone in its expansion. GCM Grosvenor Managing Director Peter Braffman pointed to ACP's platform and position in the global residential market as key drivers for the partnership, while Executive Director Danielle Even highlighted the firm's local relationships and sourcing capabilities.
Norbert Gehrke
