Evans Randall moves into debt financing with ex-Capmark team

Private UK banking group Evans Randall has poached an entire debt lending team from real estate lender Capmark Finance Group to establish a EUR 625mln mezzanine and preferred equity fund targeted at leveraged property deals in the current turbulent market. The fund, known as Evans Randall Capital Partners, will operate in the UK, Continental Europe, the Gulf States and Asia.

Evans Randall has made a name for itself in the last few years as a prolific investor in high-quality real estate assets. It has built up a EUR 6.9bn portfolio, with the emphasis on trophy assets such as The Gerkin in London. The new fund marks the first time that Evans Randall has ventured directly into property lending. The bulk of the lending experience from the new fund is coming from the former Capmark team headed by managing directors Andrew Haines and Sam Mellor. In its announcement, Evans Randall noted that the ex-Capmark team had completed over 200 transactions in the last three years.

Michael Evans, CEO of Evans Randall, said the bank has also built up a lot of knowledge about the needs of borrowers as an investor and borrower over the last few years when acquired a bn portfolio of assets. He said the fund will target separate funds at the various regions to enable proeprty investors and developers 'to reduce or release equity 'to invest in other projects'.

The fund will also focus on restructuring B note holders investments and is seeking returns after fees of between 15-16% per annum for itself and the fund's co-investors.