Pearlmark raises $50m for mezz real estate fund

The firm, which launched the fund in 2013, is targeting net IRR of 10 to 12 percent.

Pearlmark Real Estate Partners has raised $50 million for the first close of Pearlmark Mezzanine Realty Partners IV, the latest fund in the firm’s high yield debt series. The vehicle was launched in January 2013, according to PDI sister title PERE.

The capital will be deployed for mezzanine lending across refinancing, recapitalisation, acquisition and selective development project transactions, according to a statement. The fund will also look at other debt structures including whole loans, bridge loans, preferred equity and structured facilities. The net internal rate of return is targeted at between 10 and 12 percent over three to five years. The fund garnered $50 million for the first close with another $25 million in commitments raised.

The fund is set to receive significant investments from Resource America, Inc. which owns 50 percent interest in Pearlmark, according to the statement. Resource America specialises in real estate and credit investments and manages about $20 billion in assets.

The targeted fund size is around $300 million with a hard-cap of $500 million. The private investment firm has raised about $928 million since the launch of the first fund in the series. 

Pearlmark’s high yield debt funds have made 117 loans totalling about $1.5 billion, according to the company website.

Chicago-based Pearlmark Real Estate Partners, formerly called Transwestern Investment Company, has about $4.5 billion in assets under management. The firm invests via three platforms; private equity investment funds that look at office, retail and industrial assets, a multifamily private equity investment fund that targets institutional-quality rental properties and high-yield debt.