Duet Private Equity raised only half its £100m target in this month’s initial public offering for Duet Real Estate Finance.
The new £50m company, which listed on the main stock exchange on 14 March, is a feeder fund to Duet’s European Real Estate Debt Fund.
It is the only UK-listed company focused on investing in property mezzanine debt. Although the listing fell short, Duet said it had also raised a further £25m in direct commit-ments to the mezzanine fund.
The fund raised about €100m in its first close just over a year ago. About half that equity came from seed investor Forum Partners and Duet Group.
Investors in the new firm, chaired by former Hermes and Axa Real Estate director Quentin Burgess, are promised a cash yield of 7% per year.
Dale Lattanzio, managing director of Duet Private Equity, said: “A number of investors are interested in the strategy and we intend to work with them to increase the fund’s size.”