The fourth edition of Real Estate Capital Europe’s annual debt fund ranking reveals investors continued to demand exposure to the strategies of the leading private real estate debt managers.
The Debt Fund 30 ranking, compiled by PEI Media’s research and analytics team, ranks managers by the volume of capital they raised from external investors in the preceding five years for the express purpose of providing credit to European property owners.
This is the second year running that the ranking has tracked 30 managers, after initially starting as the Debt Fund 20 in 2019. This expansion reflected the growth in the market, and this year’s Debt Fund 30 shows that European real estate debt is still thriving.
The leading cohort of managers in the ranking has continued to grow the volume of capital in its stewardship. The European real estate market remains focused on recovery following the covid-19 crisis, meaning managers saw a prime opportunity to raise and deploy investor capital. In the first iteration of the ranking in 2019, the top 20 managers had raised $42.7 billion over the previous five years, a total that has been on the rise ever since, with the top 20 in the 2022 ranking raising $69.1 billion.
In total, the managers in this year’s Debt Fund 30 ranking raised $80.29 billion, a 12.6 percent increase from the 2021 ranking, which is testament to the rising popularity of European real estate debt among investors in recent years.
Volume of capital raised by the
top 10 managers
Capital keeps flowing into real estate debt, as investors view it as a defensive way of investing while accessing attractive risk-adjusted returns. As investors’ understanding of European real estate debt grows, so too do allocations into a range of strategies, including senior lending and high-yield debt.
In a market filled with opportunity, established players are increasing their portfolios, while new entrants are also seeking to build market share, including big name managers that have extensive track records in real estate equity.
This year’s ranking shows movement, as select managers make their way up the ranking from last year but also shows an increasingly diverse landscape with a number of new entrants, suggesting the next iteration of the Debt Fund 30 will reveal more surprises. However, one fact is clear: Europe’s leading managers of property credit strategies continued to grow their businesses in 2021 and showed no sign of slowing down. Read on to find out which organisations bolstered their financial firepower during a year of recovery.