Doughty Hanson hires another principal(4)

In its second personnel addition in two weeks, the private equity real estate firm has hired Edward Bates, formerly of Orion Capital Managers.

Doughty Hanson & Co Real Estate has appointed Edward Bates, formerly an investment director at European real estate firm Orion Capital Managers, as a Principal.

While at Orion Bates was involved in fund-raising, acquisitions, asset management and disposals across Europe. Before joining Orion in 1999, Bates was a Vice President at The Clarkson Group, a private real estate investment and development company based in the US. He has a BA in Mathematics and Economics from Hampden-Sydney College.

Last week the firm announced it had hired Martin Brendel, former head of acquisitions at DEGI, as a principal to focus on value-added and core-plus cross border acquisitions. The hires have prompted some speculation that Doughty Hanson is considering the creation of a pan European fund core plus and value-added fund that would be different to the firm’s previous two European real estate vehicles.

Its first two funds have pursued purely opportunistic strategies. Doughty Hanson & Co Real Estate I acquired €4 billion ($5.6 billion) worth of assets and is expected to make a 4.4x return on cash investment when all distributions have been made and a gross annual internal rate of return of 43 percent. Its follow up fund closed in 2006 on €506 million and has so far invested just over 40 percent of equity.