Cheyne Capital to launch fourth real estate debt fund

Cheyne Capital Management is to launch a fourth real estate debt fund this year, having closed its third fund at around $770m (€686m).

The manager said its Cheyne Real Estate Credit Holdings Fund III closed at 18% above its initial fundraising target of $650m.

The fund, focused on Europe, takes the company’s net real estate debt assets to $2.1bn.

Ravi Stickney, Cheyne Capital partner and head of real estate, said: “We have known for a long time that there are ample opportunities in European real estate lending.

“The closure and over-subscription of our third fund focused on this sector is continued proof it remains ripe for investing. We plan to launch a fourth fund later this year.” 

He said Europe’s emergence from the financial crisis would fuel a strong pipeline of “compelling deals in this sector, which will be led by an increased demand for alternative credit needed to fill the void left by the big banks retreating from this space”.

Ravi Stickney, partner and head of real estate, said earlier this year that Cheyne Capital was avoiding “highly speculative assets where the outcome of asset management is unclear”.

In addition to distressed assets, Cheyne has previously focused on CMBS and RMBS.

It said it produced returns of as much as 27% from its investments.

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