Chart of the week: Real estate debt gaining momentum

After two years of falling fundraising, real estate debt is attracting renewed interest


Click here for a larger version.


Pacific Alliance Group (PAG) recently partnered with South Korean brokerage company Meritz Securities to launch a $180 million real estate debt fund, Private Debt Investor reported last week.

The fund launch comes amid growing investor appetite for real estate debt. In the first nine months of this year, more capital has been raised by funds of this type than in the whole of 2015.

The launch of PAG Meritz Securities Private Debt Fund, the first of its kind in South Korea, indicates that the appetite for real estate debt is continuing to grow.

Large funds in market, such as Colony Capital’s Distressed Credit & Special Situations Fund (CDCF) IV and Kildare Capital’s European Partners II – targeting $2.5 billion and $2 billion respectively – further suggest that the surge in real estate debt fundraising will hold momentum.