European asset manager Cheyne Capital Management has launched its third real estate debt fund, with a target believed to be around $600 million according to market sources.
Cheyne Real Estate Credit Holdings III (CRECH III) will invest in core European real estate opportunities across the debt spectrum, via a range of credit instruments including CMBS, senior loans, mezzanine, equity and special situations workouts, the firm said in a statement confirming the launch. Its first CRECH fund launched in 2011, with the second, CRECH II, launching last year.
“These funds focus on mid-market borrowers constrained by the more stringent lending criteria and low-LTV senior loans of traditional real estate lenders, as well as by the bias among non-bank players for larger ticket loans,” the firm said in the statement. “Cheyne is addressing a need for more comprehensive financing solutions across the capital structure and for varying real estate asset profiles,” it added.
Cheyne’s real estate debt team is led by Ravi Stickney, with Graham Emmett acting as investment partner. There are nine further professionals on the team.
CRECH I returned 12.7 percent in 2013. The company also has an LSE-listed company, Real Estate Credit Investments (RECI), the value of which rose 50.1 percent last year.