Mercia Asset Management is seeking to raise up to £500m (€588m) for a new UK industrial and logistics development debt fund targeting institutional investors.
The UK Real Estate Development Debt Fund will provide senior secured lending to experienced developers across the country.
Dean Heaney, head of distribution at Mercia, said: “Investors are increasingly looking to private credit strategies that offer a combination of asset backing, downside protection and attractive risk-adjusted return potential in markets where there is a clear gap.
“Our Real Estate Development Debt Fund is built around a highly experienced team, a proven lending model, supporting experienced developers and a disciplined approach to capital preservation.
“The strategy combines a strong track record with Mercia’s wider institutional platform, creating a compelling proposition for investors seeking exposure to secure real estate development debt.”
Mercia Asset Management’s subsidiary, Frontier Development Capital, will manage the strategy.
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