+++ Prime Capital-Lenwood will receive another EUR 200m for an additional fund of its real estate mezzanine strategies +++
Frankfurt, 19th June 2018
Prime Capital-Lenwood has won a further EUR 200m for its real estate mezzanine strategy from a German institutional investor for a managed account vehicle. Together with the multi-investor fund launched in late summer 2017, the commitments in the mezzanine strategy will therefore increase to EUR 300m. The strategy aims for a net target return in the upper single-digit interest rate range and offers investors the opportunity to invest in attractive interest-bearing loans collateralized by real estate assets. The investment focus is on junior and mezzanine loans to finance existing real estate and project developments in Germany. Investors can continue to participate in this strategy via the multi-investor fund, which has already started with a three-digit million amount. In addition to the real estate mezzanine strategy Prime Capital-Lenwood also pursues whole-loan strategies, which enable investors to invest in real estate secured financing.
“Private debt is clearly on the rise,” explains Andreas Kalusche, member of the board of Prime Capital. “The segment of secured real estate loans with a loan-to-value of over 60% is a highly attractive niche for institutional investors. With our mezzanine strategy we have opened up an investment opportunity that is tailored to the Needs of the investors. Above all, the combination of financing for project developments and existing properties allows a high ongoing cash distribution to our investors. This is an important aspect for our predominantly institutional investor base. Loans are granted to various real estate segments and the feedback from investors is very positive. Our new whole-loan strategy is also well received by the market.”
In order to secure access to attractive investment opportunities, Prime Capital has entered into a partnership with Lenwood Capital, an investment manager specialised in real estate finance. Prime Capital is responsible for Portfolio and risk management as well as for the launch and ongoing management of the fund vehicle. Lenwood Capital’s responsibility lies in the origination, credit review and approval as well as the ongoing management of the real estate loans. The company has a long track record in real estate financing. Lenwood Capital’s partners have built up a network to all relevant stakeholders in the real estate market over the last 20 years.
“Our excellent access to real estate companies, banks and project developers enables us to identify attractive financing opportunities with good credit quality for investors in the German real estate market,” explains Lenwood Capital Partner Burkhard Schlickenrieder. “Support from our investors is very high in particular because the strategy’s investment focus is on that part of the real estate market that is only served to a limited extent by Banks due to regulatory requirements. Interest rates for investors are therefore high. We are also pleased that we have been able to invest with professional market participants so far, above all in project development in very good locations in Germany’s top cities”.
About Prime Capital
Prime Capital AG is an independent asset management firm and financial services provider, focusing on institutional clients. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. Prime Capital was founded in 2006, currently employs more than 75 people in Frankfurt, Luxembourg and London and is regulated by BaFin, CSSF and FCA. As of December 2017, Prime Capital has approximately EUR 10.4 bn Assets under Management, managed and administered.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, member of the board
Tel: 0049 69 9686 984 36