Bridge Investment Group closes fundraise for $2.9bn senior loan, CRE CLO strategy

Fourth iteration of debt fund focuses on multifamily, office, senior housing and logistics.

Bridge Investment Group Holdings has finished fundraising for the fourth iteration of its fourth debt vehicle and plans to deploy the $2.9 billion across new multifamily, office and logistic assets. 

The $38.8 billion Salt Lake City-based manager closed its latest fundraise for Bridge Debt Strategies Fund IV on June 22 with $2.9 billion of equity commitments. 

Fund deployments will focus on originating first mortgage direct loans, investing in Freddie Mac K-Series B-Pieces and other CRE-backed debt including CRE CLOs, according to the firm. Bridge said it will target underserved parts of the debt market where competition is more limited and barriers to entry are high. 

Sector focuses for the firm’s platform include multifamily, office, senior housing and logistics. “Our heavy focus on recession-resistant multifamily collateral and floating rate debt positions the fund well in the current market environment,” said James Chung, CIO for the Bridge Debt Strategy series. “To date, we have assembled a durable portfolio and have substantial dry powder, which will create the opportunity to deliver strong returns to our investors.” 

Bridge Debt Strategies Fund IV’s closure comes two-and-a-half years after the $1.6 billion close of its predecessor, Debt Strategies Fund III, in January 2020. At the time of its close, the third instalment of the strategy attracted allocations from pensions such as California’s Ventura County Employees Retirement Association and Sweden’s Kapan Pensioner, according to affiliate publication PERE. 

Between the third and fourth instalments of Bridge’s debt strategies fund, the firm has tweaked deployment focus slightly. In Fund III, Bridge targeted more specific lines of debt beyond Freddie Mac K-Series securities including short- and intermediate-term first mortgages, mezzanine loans, B-notes and preferred equity.