Invel Real Estate announced on Monday that it closed its Eudora Fund 2 at more than €400 million, surpassing its initial target of €300 million and signalling strong investor demand for its Southern Europe strategy.

The European private equity real estate firm said that including leverage and co-investment capital, the fund will have firepower exceeding €1 billion, significantly expanding its investment capacity across target markets.

The fund is structured as an opportunistic investment vehicle, deploying capital across the capital structure in situations driven by mispricing, market dislocation and value creation opportunities.

Invel said its strategy is built around two core themes, liquidity solutions and recapitalisations, alongside investments in single assets, portfolios and platforms where value can be unlocked through repositioning, development and active management.

Geographically, the fund focuses on Italy and Greece, which Invel described as fragmented markets offering strong potential for platform building and long term value creation.

Sector exposure is concentrated in living and hospitality, supported by structural supply constraints, resilient demand patterns and significant consolidation opportunities.

The firm said the oversubscription reflects sustained investor confidence in its differentiated investment approach, long standing track record and established local presence, as well as its ability to source off market transactions.

It added that the investor base is diversified across Europe, the Middle East and North America, and includes asset managers, financial institutions, family offices, foundations and provident funds.

The fund has been classified under Article 8 of the Sustainable Finance Disclosure Regulation, integrating environmental and social characteristics into its investment process in line with the firm’s responsible investment framework.

Invel said that to date around 60 per cent of committed capital has already been deployed across 10 investments spanning Italy and Greece, with one transaction already fully realised.

These investments cover living, hospitality, logistics and structured financing, reflecting the breadth of the fund’s mandate across real estate and credit linked opportunities.

Among the transactions highlighted is a strategic partnership with YellowSquare aimed at developing a hybrid hospitality platform targeting more than 5,000 beds across Southern Europe.

The fund has also supported the creation of Greece’s first dedicated flexible living platform, targeting 2,000 units at stabilisation.

In addition, it has provided a €111.2 million whole loan financing for the transformation of the Hotel Majestic on Rome’s Via Veneto into the Baccarat Hotel Rome, marking a major repositioning project in the luxury hospitality sector.

Managing partner and founder Chris Papachristophorou said investor backing reflected confidence in the firm’s strategy and execution.

“We are excited by and appreciative of the strong support we have received from our investors during the fundraising process,” he said.

He added that Invel’s approach is rooted in a long-term alignment of interests with investors and a disciplined investment process.

“At Invel, we have always operated with a true ownership mindset, our interests are fully aligned with those of our investors and since inception we have delivered strong results through a disciplined approach to sourcing, structuring and actively managing investments in markets where we have deep local expertise and long-standing relationships,” he said.

He also stated that the firm remains confident in the pipeline of opportunities across its target markets.

“As we look ahead, the opportunity set across our target markets remains as compelling as ever, and we are committed to continuing to generate attractive, risk-adjusted returns for our investors,” he said.