LendInvest has launched a new real estate debt fund with £150m (€171.6m) seed capital from a previous fund.
The UK online platform for property finance and investing, said LendInvest Real Estate Opportunity Fund was seeded with initial commitments with investors migrating from the Montello Real Estate Opportunity Fund (MREOF).
MREOF invested in LendInvest loans and was advised by LendInvest Capital Advisors.
The new fund provides its investors with the opportunity to participate in a diverse pool of real estate-backed loans originated directly by LendInvest.
The fund’s objective is to deliver a sustainable income yield, with low volatility and low correlation to mainstream asset classes.
Alter Domus Management Company, based in Luxembourg, is the alternative investment fund manager.
Carl Giannotta, Director of funds distribution at LendInvest, said: “Repeat commitments from previous investors, together with new investment, are testament to the continued strength and growth of the LendInvest business as well as the successful track record of the Fund’s predecessor, the Montello Real Estate Opportunity Fund.
“We believe that real estate debt should form part of every institutional investor’s portfolio and are pleased to see investors increasingly rotating from real estate to real estate debt in order to diversify and position their portfolios more conservatively.”