Frankfurt, 07th May 2020
− Corona crisis further improves risk-return profile; yield targets already outperformed in 2019
− Whole loan financing adds to mezzanine financing
− Fund commitments doubled to nearly EUR 1 Billion
The independent asset manager and financial services provider Prime Capital continues to grow in Commercial Real Estate debt and gained significant capital inflows for its real estate financing strategies.
The company has received further client funds for the financing of European real estate in the first quarter of 2020, increasing the total fund commitments in real estate financing to nearly EUR 1 billion. The additional capital comes from new investors as well as existing investors who increased their previous fund commitments. For the first time, funds were solely collected for whole loan financing, hereby, the financing of an investment project, including senior tranches, is made possible.
Prime Capital has been active in the market with a focus on mezzanine financing since 2017.
The increase in funds managed goes hand in hand with the extension of the real estate financing team. Prime Capital has strengthened the team with new senior professionals. “The additional fund commitments result from our investment success in the previous years. We were able to invest the received funds with attractive returns within a short time. Also, we have exceeded the notified profitability targets. In light of our latest initiatives as well as the current and forthcoming recruitments, we are confident that we will continue to grow in real estate financing in the coming years”, says Stefan Futschik, Head of Private Debt of Prime Capital AG.
The current market distortions do not have a significant impact on the portfolios managed by Prime Capital. The vast majority of the funded project developments as well as existing properties is going according to plan. Andreas Kalusche, CEO of Prime Capital AG: „Since the beginning of the Corona crisis, there are more and more opportunities for institutional investors to invest in real estate financing. On the one hand, this has to do with an altered behavior of competing market participants such as banks, but also with the more attractive risk-return profiles that can be seen in the market.“
Prime Capital offers investors access to this attractive asset class by fund solutions as well as customized individual mandates.
About Prime Capital:
Prime Capital AG is an independent asset management firm and financial services provider. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energies and Private Debt. Furthermore, the company offers Asset Management Outsourcing and Access Solutions. Prime Capital was founded in 2006, currently employs around 100 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of March 2020, Prime Capital has approximately EUR 16 bn Assets under Management, managed and administered.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, CEO
Questions regarding the content please contact Stefan Futschik, Head of Private Debt
Tel: 0049 69 9686 984 307