ICG-Longbow, the real estate debt-focused arm of Intermediate Capital Group, has held a final close of its third senior debt fund on £370 million (€409 million).
The firm announced that the closing of ICG-Longbow Senior Debt Programme Vintage III brings assets under management in its senior debt strategies to £1.2 billion.
The firm had a fundraising target of £500 million for the latest senior debt fund, according to Real Estate Capital data. The fund did, however, outraise its predecessor, which closed on £356 million. The firm’s first senior debt offering raised £425 million, according to REC data.
The fund invests in UK-domiciled senior real estate debt. David Mortimer, head of senior debt at ICG-Longbow, told REC’s sister title, Private Debt Investor, that the fund’s average deal size is between £25 million and £35 million.
To date, the fund has deployed £160 million across eight transactions. Mortimer said the fund is aiming to deploy £100 million of capital per quarter. It is on track to be fully invested by the year end.
Mortimer said this year ICG-Longbow has attracted insurance companies and overseas investors to its senior offering, alongside UK pension plans – the firm’s traditional investors for its senior strategies.
ICG-Longbow has generally raised larger amounts for its funds focusing further down the capital structure. The firm’s UK Real Estate Debt Investments IV fund raised £1 billion. Its predecessor raised £700 million.
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