Pearlmark Real Estate Partners has raised $50m for the first close of Pearlmark Mezzanine Realty Partners IV, the latest fund in the firm’s high yield debt series.
The fund will originate mezzanine loans for acquisitions, refinancings, recapitalizations and development projects, also targeting subordinate interests of structured loans, preferred equity and bridge loans. The fund is targeting returns between 10 and 12 percent.
Investors have committed an additional $25m for capital commitments scheduled over the course of the next year. The targeted fund size is $300m, with a hard-cap of $500.
“On a risk-adjusted basis, now is an opportune time to be investing in the mezzanine space,” said Pearlmark CEO Stephen Quazzo.
Pearlmark launched the fund with strategic partner Resource America, which owns 50 percent interest in Pearlmark and specializes in real estate and credit investments and manages about $20b in assets.
The Chicago-based firm, formerly called Transwestern Investment Company, has raised about $928m since the launch of the first fund in the series, with its high yield debt funds providing 117 loans totaling roughly $1.5bn.
Pearlmark has about $4.5bn in assets under management, investing via three platforms: private equity investment funds geared toward office, retail and industrial assets; a multifamily private equity investment fund that targets institutional-quality rental properties; and the high-yield debt series of funds.
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