UK – ICG-Longbow has raised £105m (€122m) for a new real estate debt fund to be listed on the London Stock Exchange.
It is the second debt fund in less than two months to successfully attract institutional capital through an initial public offering (IPO), with Starwood Capital also raising £229m for its London-listed Starwood European Real Estate Finance fund.
Unlike Starwood's vehicle, which is pursuing a mixed-debt strategy, the ICG-Longbow Senior Secured UK Property Debt Investments fund will focus on senior debt, although the fund manager is also active in the whole-loans and mezzanine markets through its latest non-listed debt fund, for which it raised more than £200m.
ICG-Longbow has targeted a dividend income of 6% per annum once fully invested.
The fund will originate new senior loans backed against "quality income-producing investments, in support of well-capitalised borrowers who can demonstrate a track record in asset management".
Jack Perry, chairman of the ICG-Longbow fund, said: "Raising over £100m in what is currently a very difficult fundraising environment is a great achievement."
"A 6% pa dividend yield from a diversified senior-loan portfolio is attractive, and there has been significant demand from investors looking to diversify their portfolios into new investment opportunities.
"We are currently seeing a significant shortfall in the supply of senior debt to the UK commercial property sector."
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