ICG-Longbow’s UK Real Estate Debt Investment Fund IV has reached a first close of €500m (£364m) with £50m coming from the balance sheet and further closes expected this year.
ICG-Longbow parent Intermediate Capital Group (ICG) said in its annual results to 31 March 2015 that total real estate funds under management grew 112% to €2.7bn.
The fourth Longbow fund targets higher-yielding debt and invests in whole loans and mezzanine. ICG said the company had also raised £500m for its real estate senior debt strategy during the year taking the total amount to deploy to £650m. It also signed a £202m mandate to invest in UK real estate development, believed to be with sovereign wealth fund Abu Dhabi Investment Authority.
ICG invests in other debt asset classes. Overall, €3.1bn was raised across all of its European funds which include European Mezzanine Fund VI as well as senior property debt investing and UK Real Estate Debt Investment Fund IV.
During the year, ICG completed its purchase of the remaining 49% of ICG-Longbow. The partners, led by founders Kevin Cooper and Martin Wheeler, were paid £13m last October and stand to collect a possible balance of £24m in 2016 depending on assets under management.
ICG reported a pretax profit up 9% to £178.5m.
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