AEW, Natixis close on over €400m for debt fund

The investment managers are now more than halfway toward reaching the target for the European vehicle.

Natixis Asset Management and AEW Europe have held a close on Senior European Loan Fund (SELF) II, PDI sister publication Private Equity Real Estate has learned.

The investment managers have raised over €400 million and expect to hold a third close in the first half of the year, sources with knowledge of the fundraising process said. SELF II was launched in March with a €750 million target, PERE previously reported. The firms held a €162 million first close for the fund in May.

The fund will invest in senior real estate loans backed by core office, retail, logistics and hotel properties located in the main European markets. The partners’ first fund, SELF I, was launched in 2012 and raised €323 million. SELF I was fully invested by July 2015.

So far, capital from the fund has been deployed for three investments in France, Germany and Italy totaling €75 million, PERE understands. AEW and Natixis also have a pipeline of four additional transactions with a total value of €100 million. When those deals are closed, the firms will have invested 44 percent of the total funds raised.

The fund is managed by Arnaud Heck at Natixis Asset Management and Cyril Hoyaux at AEW.

“We look forward to further developing our joint debt platform in response to growing investors’ appetite for real estate debt,” Heck said.

AEW managed €19.3 billion in real estate as of September 30, and Natixis managed more than €798.1 billion across asset classes as of December 31, according to the firms.