Intermediate Capital Group’s real estate asset management arm has raised £928m (€1.1bn) for its fifth fund at final close.
The manager said ICG-Longbow’s UK Real Estate Debt Investments V fund received capital commitment from new and repeat institutional investors from the UK, Europe, Asia and the Middle East.
The predecessor fund raised £1bn in November 2016.
Fund V targets self-originated whole loans secured against UK commercial property as well as some mezzanine debt, preferred equity and development loans.
At the end of the third quarter of the year, the fund had committed £455m in 10 transactions with loan sizes from £20m to 100m.
The manager said, the fund’s defensive portfolio – which has no exposure to the retail sector – targets a “blend of alternative sectors including residential property and hotels, alongside office refurbishments and redevelopments”.
Martin Wheeler, co-head of ICG-Longbow said: “The success of this fundraise demonstrates that investors remain confident in the long-term prospects for UK commercial real estate, our defensive strategy and investment track record despite the challenging economic environment and Brexit uncertainty.”
Kevin Crowley, head of partnership capital UK at ICG-Longbow said: “Current market uncertainty is presenting interesting opportunities for those managing flexible capital such as Fund V.
“With 49% of the fund invested to date we have the flexibility to continue with our highly-selective deployment programme and only invest where we have strong levels of conviction.”
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