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Funding boost lifts Caerus debt funds over €800m

Caerus Debt Investments has raised €395m in additional funds to lend on real estate, taking its total pool to deploy to €815m. The Düsseldorf-based investment manager has secured an extra €345m for its whole loan fund and an additional €50m for its junior debt and mezzanine fund.

Caerus Debt Investments has raised €395m in additional funds to lend on real estate, taking its total pool to deploy to €815m.

The Düsseldorf-based investment manager has secured an extra €345m for its whole loan fund and an additional €50m for its junior debt and mezzanine fund.

German Insurance giant Volkswohl Bund provided €300m of the new funding to the whole loan Caerus Real Estate Debt Fund I, with another insurance group injecting €45m. Volkswohl Bund invested €200m into the fund last year so has now contributed €500m in total.

Michael Morgenroth
Michael Morgenroth

Caerus, which is headed by Michael Morgenroth, has now raised €695m for the fund. About €200m has been deployed.

The fund, domiciled in Luxembourg, targets whole loans with loan-to-value ratios in the 50-80% range. It is looking for assets in German-speaking and Benelux countries and has a distribution yield of 6-7% pa.

Caerus’s junior loan and mezzanine fund has now raised €120m after a €50m investment from a German insurer. It targets assets with loan-to-value ratios up to 85%.

Caerus announced a first close of €70m on that fund in March last year. It has a €300m target.

The fund was seeded by Reichmuth & Co, a Swiss private bank, which committed €20m. Gothaer Asset Management, where Morgenroth sat on the board for eight years, invested €50m.

All of the debt lending has been secured on a mix of real estate portfolios and individual assets.

Office space comprises the main use type, although mixed-use properties that include hospitality and leisure elements have also been financed.

 

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