ICG-Longbow, Intermediate Capital Group’s real estate asset management division, has completed a first close of its latest senior debt vehicle with £500 mln (€590 mln) of commitments.
The successful fundraising, which has attracted commitments from both new and existing investors including both public and private sector pension funds and a leading UK insurer, follows the full investment of ICG-Longbow’s third senior debt programme in April 2019, with over £430 mln of loans across 18 separate transactions.
The senior debt strategy offers investors exposure to defensive commercial real estate loans providing strong protection against capital loss and secure income returns. It targets mid-market lending opportunities in both London and the UK regions, with typical loan sizes ranging from £10 - £100 mln.
To date, over £150 mln of commitments have been deployed across seven transactions, including a £21.5 mln loan to longstanding client Urban Splash, to support the ongoing regeneration of the landmark Royal William Yard mixed-use scheme in Plymouth.
The returns on the debt strategy are projected to outperform All Property total returns, based on IPF consensus forecasts from 2019-2023.
David Mortimer, head of senior debt at ICG-Longbow, said: 'In an uncertain political and economic environment, we believe the success of this fundraise shows that investors remain attracted to senior lending strategies with proven managers as a defensive means of gaining exposure to real estate.'
As at 30 September 2019, ICG-Longbow has over £3.7 bn of assets under management across its four strategies of senior debt, partnership capital, residential development finance and sale-and-leaseback.
