Caerus Debt Investments is looking to raise €300m for a senior whole loan real estate debt fund.

The fund manager has structured the vehicle as a pool fund, which will target senior collateralised loans with a loan-to-value ratio of up to 80%.

Caerus said the Caerus Real Estate Debt LUX SICAV-SIF fund would target opportunities in the euro-zone, concentrating on Germany, Austria, Switzerland and the Benelux countries.

The manager is targeting a 3-4% IRR.

A first close is planned for the end of October.

Investors will be able to commit a minimum €10m to the fund.

Michael Morgenroth, chief executive at Caerus Debt Investments, said: “For insurance companies, currently no other asset class offers a more attractive risk/return ratio and a higher return in relation to the equity securitisation required by Solvency II.”

Institutional investors have already awarded Caerus around €800m in senior/whole-loan strategies, €700m of which has been placed so far.

Volkswohl Bund last year doubled the size of its real estate debt investment mandate with Cearus.

The German insurer followed up on its initial €200m commitment, made earlier in 2015, with a further €300m.