ICG-Longbow is looking to revise the strategy for its listed UK senior debt fund in the face of lower return expectations.
The London-based manager said it is considering its investment policy for its UK Senior Secured UK Property Debt Investments Limited, launched in early 2013.
An increase in loan-to-value ratios at which it can lend is being considered, it said.
Acquisition or refinancing transactions where there is a leverage requirement above 70% are particularly under-supplied with capital, it added.
The firm said its board believed attractive risk-adjusted investment returns remained available in the UK real estate debt market, with strong underlying property market fundamentals and occupational demand, and low levels of property development.
It said the UK offered steady economic growth in recent years, notwithstanding uncertainties caused by the result of the country’s referendum on membership of the European Union.
The opportunity to grow ICG-Longbow through share issues from its current £112m (€129m) value is also being considered by the firm’s board.
Last year, it raised £1bn for its fourth real estate debt fund, the UK Real Estate Debt Investments IV vehicle, which attracted £146m following the Brexit referendum.
New and repeat institutional investors from the UK, Europe and Asia backed the fund.
