Omni Partners has raised £340m (€400m) for its third real estate debt fund, with a fourth vehicle expected next year.
The investment manager said it surpassed its target fundraise for the vehicle.
The Omni Secured Lending III fund provides short-term loans on UK commercial and residential properties.
Elissa Kluever, partner and managing director for credit and lending funds, said: “The continued institutional interest in niche private credit strategies is evidenced by the success of OSL III fundraising.”
Investor demand for the strategy persists, she said. “We anticipate launching our fourth private credit fund in early 2018.”
The London-based firm said a tightening of underwriting requirements by traditional banks has resultied in an emphasis on standardised lending criteria and increased loan approval times.
Omni Secured Lending Fund III was launched in April last year.
Omni’s first two lending funds delivered a 10% net internal rate of return (IRR), while OSL II has delivered an estimated net IRR of 11%.