London-based investment manager Omni Partners has reached final close on its second real estate debt fund, having raised $240 million. Following the final close, Omni is working towards launching a third real estate debt fund in April.
The firm’s second secured lending fund, Omni Secured Lending Fund II LP, closed with additional commitments of $34 million. The fund was launched in April 2015 and invests in short-term loans secured by UK residential and commercial property. Since its inception, the fund has delivered a net IRR of 11.1 percent.
The fund provides loans for six to 18 months to a maximum loan-to-value of 70 percent. The loans typically fund the acquisition of buy-to-let properties or refurbishment projects.
“The $240 million of investment we have raised for the second vintage of Omni Secured Lending is proof of investors’ continued interest in an unlevered lending strategy delivering attractive yields on assets of superior quality and short tenor,” said Omni’s founder and head of risk, Steve Clark.
“In order to continue to meet institutional investor demand and to take advantage of the ongoing opportunities left by traditional banks, we are launching the third vintage of Omni Secured Lending in April this year,” Clark added.
The first fund, Omni Secured Lending I, was launched in February 2014. It funded 92 loans before being realised in January 2015. Quarterly distributions have returned 107 percent of investors’ original commitments, and the vehicle is anticipated to make its final distribution in the first half of 2016.
Amicus Finance, which was founded by Clark in 2009, acts as the fund’s origination platform. The firm was acquired by Omni in November 2013 and has completed more than £615 million of lending since its launch.