Edmond de Rothschild REIM raises further capital for European debt fund

Edmond de Rothschild REIM raises further capital for European debt fund

Edmond de Rothschild Real Estate Investment Management (REIM)’s pan-European High Yield I Real Estate Debt fund has increased its current equity commitment to above €160 million with a further capital raise.

The capital was raised from a large German insurance company and a mix of international investors arranged through the Edmond de Rothschild Private Bank.

The Edmond de Rothschild High Yield I Real Estate Debt Fund is providing whole loans and mezzanine loans secured against real estate collateral across Western Europe. The fund was launched in November 2020 with a target size of €300 million and has invested into four European debt transactions so far with a total loan commitment of approximately €145 million.

The fund is targeting circa 8% net IRR including a running coupon 4%-5% p.a. paid out on a quarterly basis1.

The Edmond de Rothschild REIM Real Estate Debt Team is also managing a €180 million separate fund dedicated to one German institutional investor taking the total capital raised for its European Real Estate Debt Strategies to date to more than €340 million.

Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, said: “The success of this closing demonstrates the relevance of our investment strategy in an uncertain macroeconomic environment. Building a diversified pan-European loan portfolio focused on achieving an attractive risk-adjusted return with a stable cash distribution and each loan investment benefitting from a security package and the sponsor’s equity cushion fully meets the needs of investors. Credit is a good place to be when markets are going through a correction. We continue to grow our Real Estate Debt Fund backed by a strong deal pipeline and number of deals in due diligence as well as intensified international fundraising activities.”

The Edmond de Rothschild Real Estate Debt – European High Yield I Fund is a closed-ended fund domiciled in Luxembourg in the form of a SCA SICAV-RAIF. Alter Domus is the Alternative Investment Fund Manager.