ICG-Longbow, the real estate debt-focused arm of Intermediate Capital Group, has closed its Senior Debt Fund III on £370 million ($483 million; €409 million), according to a company announcement.
According to PDI data, the firm has a fundraising target of £500 million for the latest senior debt strategy. The fund did, however, outraise its predecessor, which closed on £356 million. The firm’s first senior debt offering raised £425 million, according to PDI data.
The fund invests in UK-domiciled senior real estate debt. David Mortimer, head of senior debt at ICG-Longbow, told PDI the fund’s average deal size is between £25 million and £35 million.
To-date the fund has deployed £160 million across eight transactions. Mortimer said the fund is aiming to deploy £100 million of capital per quarter. It is on track to be fully invested by year’s end.
The fund saw investors from UK pension plans – the firm’s traditional investors for its senior strategies. This year, however, Mortimer said ICG-Longbow has also seen insurance companies and overseas investors pay attention to its senior offering.
ICG-Longbow has generally raised larger amounts for its funds focusing further down the capital structure. The firm’s UK Real Estate Debt Investments IV fund raised £1 billion. Its predecessor raised £700 million.