Debt Fund 25: Profiles 16-25

PGIM

Capital raised: $1.33bn
Headquarters: Madison

 

PGIM Real Estate, part of US-based Prudential Financial’s investment management business, operates core, core-plus Andrew Maclandand value-add lending strategies, globally.

Andrew Macland (pictured) is head of European debt. Bryan McDonnell is head of US debt and chair of global debt. Andrew Radkiewicz is global head of private debt strategy and investor solutions.

The Europe-focused vehicle Pramerica Real Estate Capital VI reached final close in April 2017 on £1 billion (€1.15 billion). Via the fund, PGIM provides whole loans, mezzanine and preferred equity.

Octopus Real Estate

Capital raised: $1.32bn
Headquarters: London

Benjamin DavisOctopus Real Estate was founded in May 2019, with the merger of Octopus Property and Octopus Healthcare, but the group has been lending against UK property since 2008. The specialist lender provides residential, commercial and development finance.

Its 2020 loans so far include £8 million (€9 million) to wealth manager Prydis for the acquisition of a House of Fraser store in Exeter and a £29.6 million loan to developer Matching Green for a residential and commercial development in Bermondsey, London. The firm is led by chief executive Benjamin Davis (pictured), previously of YFM Equity Partners.

Amundi Group

Capital raised: $1.26bn
Headquarters: Paris

Amundi Group, the French manager with €1.65 trillion of assets under management, is currently investing from Amundi Senior Real Estate Debt Fund 2018, a €250 million vehicle that was launched in May 2018. The fund has a target size of €500 million and is investing across western Europe in France, Italy, the Netherlands and Spain.

Amundi’s head of real estate debt strategy is Bertrand Carrez. It launched its commercial real estate debt strategy in 2018, offering exposure to eurozone senior real estate debt, and predominantly investing in loans with floating rates to provide a hedge against rising interest rates.

Incus Capital

Capital raised: $1.25bn
Headquarters: Madrid

The Madrid-based ‘speciality credit firm’, which focuses on mid-market European lending, was founded in 2012 by Andrew Newton, formerly of Lehman Brothers.

In September 2018, it closed its European Credit Fund III on €500 million, up from €270 million for its second credit fund in 2016. The fund focuses on asset-backed transactions. Target investments are €5 million to €100 million. Incus Capital has €1 billion of assets under management and has invested over €800 million in more than 40 transactions since its inception in 2012. It is also investing its reportedly €600 million Senior Credit Real Estate Fund I.

Pluto Finance

Capital raised: $1.03bn
Headquarters: London

A new entrant to this ranking, London-based Pluto raised more than £780 million (€898 million) of capital across five vehicles during the ranking’s timeframe.

Pluto’s speciality is residential development finance in the UK. Its product range includes stretch-senior development loans at up to 90 percent of development costs, and senior loans of up to 60 percent of gross development value or 70 percent of costs. It also writes bridging loans and private rented sector residential term loans.

Its selling point, the company says, is providing a faster turnaround than high street lenders.

Omni Partners

Capital raised: $917m
Headquarters: London

Omni Partners makes the ranking for the second year running. In 2019, it ranked 16th, when its total raised stood at $947 million for 2014-18 inclusive.

The manager’s investment strategies focus on “event-driven” investing and secured lending – the latter for short-term UK property loans. It was founded in 2004 by Steve Clark, a former co-head of international proprietary equity trading for Japanese bank Nomura International.

According to its website, premium pricing is obtained in exchange for “speed and certainty of execution”. Its average loan size is less than £1 million (€1.15 million).

AEW and Ostrum Asset Management

Capital raised: $896m
Headquarters: Paris

AEW and Ostrum Asset Management, two subsidiaries of French company Natixis Investment Managers, are currently raising the third fund in their Senior European Loan Fund series, with a €700 million target.

The joint venture, which was placed 17th in last year’s ranking with $938 million of capital, announced in August 2019 that it had completed the final investments for the SELF II vehicle. The fund raised €549 million of equity by final close in 2018. The business, run by Cyril Hoyaux (pictured) of AEW and Arnaud Heck of Ostrum, began investing the first SELF in 2012.

GAM Holdings

Capital raised: $806m
Headquarters: Zurich

The Swiss asset manager’s fundraising volume is unchanged from 2019, when it ranked 20th.

In 2015, GAM bought the real estate finance business of Renshaw Bay, the London-based asset manager set up in 2011 by Bill Winters, now chief executive of banking group Standard Chartered.

Our data show GAM raised £200 million (€230 million) for its second property finance fund by final close in 2017. Prior to that, the Renshaw Bay Real Estate Finance Fund closed on £356 million in March 2015.

Martin Farinola and Andrew Gordon manage the lending team.

Nuveen Real Estate

Capital raised: $650m
Headquarters: London

Investment manager Nuveen launched its second UK-focused real estate debt fund, Global Real Estate Debt Partners – Fund II (UK), in 2018 with a target of raising £500 million (€576 million). The company had raised £300 million at final close for its predecessor UK fund in December 2016.

The company’s European property lending activity is focused on whole loans secured by core assets, although it selectively provides junior loans. Nuveen also lends in North America.

Christian Janssen (pictured) is head of debt, real estate, Europe. Jack Gay is global head of commercial real estate debt.

Europa Capital

Capital raised: $415m
Headquarters: London

Europa Capital, founded in 1995, is majority-owned by Japanese real estate company Mitsubishi Estate. It focuses on equity and debt investment in European property markets.

In September 2017, it announced the launch of a UK debt vehicle, structured as a club with commitments of £100 million (€112 million). Via the vehicle, Europa targeted mezzanine and whole loan lending opportunities, up to 85 percent loan-to-value, with a focus on regional UK deals.

According to its website, Europa has advanced loans against property valued at around £700 million, of which less than 15 percent is located in London.

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