Welcome to the third edition of our annual ranking of the leading private real estate debt managers active in Europe.
The Real Estate Capital Debt Fund 30, 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. As the influence of debt fund managers in the European market has grown, so has our ranking. It began in 2019 as the Debt Fund 20, expanded to 25 in 2020 and has now grown to encompass an additional five managers.
The leading cohort of managers grew its financial firepower during 2020 – a year of dislocation in Europe’s real estate lending market. In the 2019 ranking, the top 20 managers had amassed $42.7 billion over the previous five years. In the 2020 ranking, the top 20 of the 25 had raised $49 billion over the corresponding period. This time, the leading 20 raised $63.1 billion.
In total, the 30 managers featured in our ranking raised $71.3 billion between them – testament to the popularity of European real estate debt among investors in recent years.
Amid persistently low interest rates and bond yields, investors viewed real estate as a route to attractive risk-adjusted returns for most of the past decade. However, in recent years, late-cycle market conditions, characterised by high property values and strong competition for assets, convinced many to allocate capital to property lending strategies as a more defensive way to gain exposure to the sector.
Total amount of capital raised in the ranking
The pandemic has made fundraising conditions difficult. But Europe’s leading managers of property credit strategies continued to grow their businesses. Read on to find out which organisations bolstered their financial firepower during a year of uncertainty.