London-based Signal Capital Partners has raised €900 million for a credit and real estate special situations fund.
Signal Alpha II Fund began fundraising in August 2019 and has reached its final close ahead of its €850 million target. Investors include pension funds, insurance companies, financial institutions and single-family offices from EMEA and North America. FIRSTavenue acted as global placement agent for the fund.
Signal said investors expect the opportunities available to its strategy to increase following the covid-19 pandemic as banks withdraw support from areas of the market.
Tavneet Bakshi, partner and head of EMEA at FIRSTavenue, said: “The new fund’s strategy was highly relevant for the fractured capital markets across Europe before the pandemic and has become even more relevant now, as the mid-market desperately seeks aligned capital solutions.”
The vehicle will target transactions worth between €25 million and €75 million across Europe. It will utilise Signal’s network of relationships and its proprietary technology to identify credit investments in complex private investment situations and highly illiquid public market instruments. It will also look for commercial real estate investments including private lending, acquisition of debt portfolios and special situation equity.
Signal Capital’s chief investment officer, Elad Shraga, said: “As the world returns to normal post-covid-19 traditional lenders such as banks will be forced to review their loans books and release stock of non-performing loans. This will create attractive opportunities for us to step in and provide the support companies and real estate borrowers need to weather the after-effects of the pandemic and emerge in stronger shape.”
Signal was founded in 2015 by Shraga, Amit Jain and Gad Caspy who previously led special situations investing at Deutsche Bank. It has assets under management of €1.7 billion.