Och-Ziff closes RE debt fund on $735m – exclusive

The fund has received commitments from ICBC Asia and New Jersey Division of Investment.

Och-Ziff Real Estate, the real estate arm of New York-based alternative asset manager Och-Ziff Capital Management, has reached a final close for its first real estate debt fund on $735 million, PDI has learned.

Och-Ziff Real Estate Credit Fund was closed at the end of last month. The fund targets mezzanine debt investments with returns of between 10 percent and 13 percent. It invests in assets as diverse as distressed land, casinos and senior housing, according to PDI’s previous report.

The fund was launched in 2015 with a target size of around $800 million. It had total commitments of $323 million and had invested $22.4 million of its capital by the end of June 2016 , according to the firm’s second-quarter earnings results.

Both New Jersey Division of Investment and Industrial and Commercial Bank of China (ICBC) Asia have invested in the fund, according to sources close to the matter and PDI data.

The firm declined to comment on developments.

At the end of last year, Och-Ziff Capital Management closed its first European CLO vehicle, titled OZLIME, after raising €413 million in commitments. The platform targets investments in senior secured loans. The CLO was arranged by Bank of America Merrill Lynch.

The CLO is managed by Och-Ziff’s Institutional Credit Strategies team which was established in 2012. The team specialises in levered loans and private credit investment strategies. In total, the firm has issued 14 CLOs worth $7.6 billion.

As of 1 December 2016, Och-Ziff had $37.1 billion of assets under management. In addition to its New York and London offices, the firm is based in Hong Kong, Mumbai, Beijing, Dubai, Shanghai and Houston.