Frankfurt, 14. November 2017
Prime Capital AG, in cooperation with Lenwood Capital GmbH, has launched Prime Capital-Lenwood Real Estate Debt Sub-Fund No. 1 (“Prime Lenwood Fund”) in the form of a Luxembourg corporation as SICAV-FIS. The fund offers investors the opportunity to invest in attractive real estate loans, which are secured by physical assets.
The Prime Lenwood Fund can invest across the entire capital structure of German real estate financing, a market that is only served to a very limited extent by banks due to the supervisory regulations of Basel 3 and CRD IV. The investment focus is on junior and mezzanine loans as well as financing for project developments exclusively in Germany; the target yield is 6.5% (in EUR) after all fees and costs. The fund will have a maturity of 10 years. Initially, the fund will be launched with hard and soft commitments from various investors totalling several hundred million EUROs.
Prime Capital is responsible for portfolio management and risk management and has also set up the corresponding fund vehicle. In order to secure access to attractive investment opportunities – a key challenge in the current market environment – Prime Capital has entered into a partnership with Lenwood Capital, an investment manager specialising in real estate finance with extensive experience in the German and European markets. Lenwood Capital has a multi-year track record in originating, reviewing and approving credit and managing real estate loans.
“With the new Prime Lenwood Fund, investors can now participate in lucrative and asset-backed real estate investments to which they will otherwise find it difficult to gain access to. Prime Capital’s private debt team is highly experienced and has been continuously expanded over the past few quarters. We are making loans with different underlyings investable in different fund structures, as we will demonstrate with the launch of further private debt funds soon”, said Andreas Kalusche, Prime Capital’s board member, during the presentation of the fund.
“The Prime Lenwood Fund provides institutional investors with flexible access to the real estate sector, both in terms of the choice of properties to be financed and in terms of the structure and volume of lending. Our access to real estate investors and project developers allows us to identify many attractive financing opportunities in the German real estate market”, explained Lenwood Capital Partner Ulrich Kastner.
An investment in the Prime Lenwood Fund is reserved for professional investors and semi-professional investors within the meaning of section 1 (19) nos. 32 and 33 of the Kapitalanlagegesetzbuch (KAGB). The Fund may not be distributed to retail investors within the meaning of section 1 (19) no. 31 of the KAGB.
About Prime Capital
Prime Capital AG is an independent financial services provider and asset management firm, focusing on institutional clients. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. Furthermore, Asset Management Outsourcing is offered. Prime Capital was founded in 2006 and currently employs more than 70 people in Frankfurt, London and Luxembourg. The company’s regulators are BaFin in Germany, CSSF in Luxembourg and FCA in the UK. As of 30 September 2017, Prime Capital has approximately EUR 10.2 bn Assets under Management, managed and monitored on various platforms.
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