TenFifty Capital, a European focused commercial real estate lending platform for the small and mid-market space, has been launched in partnership with US asset manager Apollo.
TenFifty will by run by Hugh Fraser, the co-founder of M7, with an origination pipeline that is expected to complement Apollo’s existing large-loan strategy. The firm will focus on loans valued at between €10m and €50m with a target to originate €1bn to €2bn worth of loans in year one, focusing on senior secured lending to a mid-cap market segment that the firm said is “structurally underserved”.
Founder and CEO Fraser said: “I’ve long held the belief that the small and mid-market European CRE debt space is often neglected and ripe for improvement. TenFifty Capital exists to address that gap, with a genuinely pan-European platform dedicated to supporting this sector of the market.
“I’m thrilled to be working with a company of Apollo’s calibre, having experienced first-hand the strength of their balance sheet, but more importantly, the strength of the Apollo team’s approach to building long-term partnerships. In 2017, Apollo was the first lender to support a UK retail warehouse strategy I was leading at that time, and they quickly became one of our most reliable. Forming genuine, lasting partnerships with our borrowers is a key principle of how TenFifty conducts its business, and this alignment in approach and vision is exciting for us all.”
Ben Eppley, partner and head of real estate credit for Europe at Apollo, said: “Hugh has earned a remarkable reputation in the European real estate market. We have worked with him for many years and are pleased to now formally partner with the launch of TenFifty as a new, high-performing platform.
“At Apollo, as one of the largest non-bank commercial real estate lenders in Europe, we believe this small and mid-market strategy will be highly synergistic with our broader real estate credit business and enhance Apollo’s granular origination capability, while maintaining a focus on first lien mortgages secured by high-quality assets and institutional borrowers.”
TenFifty will collaborate with borrowers in multiple sectors and across a wide spectrum of asset types, including logistics, industrial, retail warehousing, senior/student housing, hospitality, prime office, self-storage, parking and food retail, Fraser added.
TenFifty will invest throughout core European markets including the UK, Germany, the Netherlands, Spain, Italy, Ireland and beyond, the firm said.
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