Cheyne Capital Management’s fifth real estate debt fund has reached its £600m (€673.5m) hard cap target at close.

IPE reported in January last year that the alternative asset manager was planning to raise £500m for Cheyne Real Estate Credit (CRECH) Fund V.

CRECH V has an opportunistic approach to the asset class, with an ability to invest across the capital structure.

The fund targets double-digit returns whilst maintaining an overarching focus on capital preservation.

The manager said around 80% of the fund’s capital has already been deployed. All of the fund’s investments are in Western Europe.

Jonathan Lourie, the CEO and founder of Cheyne Capital, said: “European real estate debt markets continue to be structurally inefficient. Regulatory pressures have reduced the lending volume and risk appetite of European banks, creating a sustained demand for nonbank lending.

“At Cheyne, we seek to uncover attractive investment opportunities presented by dislocations and to identify the best ways of delivering their value to investors. Our Real Estate group has demonstrated a successful track record of doing this over the last ten years.”