Real estate debt funds only halfway to targets

Real estate2At least 19 European real estate debt funds have launched in the past three years but they are only halfway to their combined target size of between €9-10 billion. The opportunity for these funds follows the withdrawal of banks from real estate lending, says Inrev, the European Association for Investors in Non-Listed Real Estate Vehicles. One hurdle to fuller adoption, though, is that many managers lack a track record to satisfy big investors. Another barrier has been the lack of senior lenders, which has meant managers have struggled to succeed with mezzanine strategies. Real estate debt funds that are now being launched tend to adopt a mix of strategies, including senior, whole loans and broader subordinated strategies, says Inrev. Most debt funds are conservative in that they focus on newly originated loans on high-quality properties in markets such as the UK, Germany, the Nordics, Netherlands and France. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.