Longbow raises EUR 278m for new UK debt fund

Longbow Real Estate Capital has announced the final close of its debt fund, Longbow UK Real Estate Debt Investments II, with £242 mln (EUR 278 mln) of commitments from a range of institutional investors.

Longbow, a specialist UK commercial property debt provider, has already completed a number of mezzanine and high-yield senior debt investments and has says it has 'a significant pipeline of further opportunities'.

M3 Capital Partners acted as exclusive financial advisor to Longbow.

In addition, Longbow has appointed David Hunter as chairman. With over 25 years' experience as a fund manager, Hunter was the managing director of Aberdeen Asset Management's property fund business until 2004, and is now a consultant with non-executive roles in the UK, Nordic region, South Africa and India.

'The current market presents a perfect opportunity for successful debt investment, both for refinancing and for new acquisitions,' commented David Hunter. 'Longbow has already proven itself as a leading player in the real estate sector, and I look forward to helping to deliver attractive returns for our investors and supporting the growth of the business.'

Longbow is 51% owned by Intermediate Capital Group (ICG), the FTSE 250 specialist investment firm and asset manager providing mezzanine finance, leveraged credit and minority equity with EUR 11.3 bn under management. ICG acquired the majority stake in Longbow in December 2010 to position itself for expansion in the UK real estate debt market.