Real Estate Capital Europe’s Debt Fund 30: 2023

Real Estate Capital Europe’s annual debt fund ranking is back. Now in its fifth year, the ranking has recorded the region’s biggest fundraisers through various climates, both in recovery phases and challenging conditions. The 2023 iteration is no exception.

The Debt Fund 30, compiled by PEI Group’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 third year running that the ranking has tracked 30 managers, after initially beginning as the Debt Fund 20 in 2019. The continued tracking of a higher number of managers is testament to a market that continues to thrive despite a challenging economic and geopolitical climate.

In the first iteration of the ranking in 2019, the top 20 managers had raised $42.7 billion over the previous five years. That total has been on an upward trajectory ever since and this year continues that trend. The top 20 in 2023 raised $75.6 billion, a 9 percent increase from the $69.1 billion recorded among 2022’s top 20 fundraisers.

In total, the managers in this year’s Debt Fund 30 raised $85 billion, a 6 percent increase from 2022’s ranking. The volatile macroeconomic environment has created caution in the market, which is reflected in the smaller year-on-year increase recorded between 2022
and 2023 than between 2021 to 2022; 5.8 percent and 12.6 percent, respectively.

Last year’s Debt Fund 30 came at a time when the market was recovering from the covid-19 pandemic; this year represents a cautious market navigating economic headwinds.

It has been an interesting time for the real estate debt space, as lenders operate in uncertain market conditions. Rising interest rates have prompted a correction in real estate values, causing European lenders to exercise caution.

Non-bank lenders have been looking to capitalise on the opportunity to bridge the gap either by unveiling large financing deals, or by opting to expand into the European real estate debt market despite the uncertainty. This year’s Debt Fund 30 features three new entrants, representing a cohort seeking to build market share.

Read on to find out which organisations took the biggest fundraising strides during these testing times.