Home Capital formation
capital formation
The Los Angeles-based manager raised an aggregate $500m for its funds targeting the strategy in the second quarter of 2023.
The strategy arrives as the firm sees more industrial, construction and multifamily opportunities.
The firm is seeking to line up patient individual and institutional capital to target small balance loans on transitional assets.
This is the Washington-based company’s first ever credit-focused investment vehicle.
JLL Capital Markets arranged the $220m loan, of which about $65.8m is comprised of preferred equity.
However, some institutions believe equity deals still are more attractive than debt investments in multiple respects.
The firm's global co-head of real estate says having $30bn of equity to deploy, at a time when debt is harder to get, is a ‘valuable asset.’
Lending and investment sales continue to be stymied by global economic volatility and the uncertain rate environment.
The question of where values sit is hanging over the market, made harder to answer by a lack of trades.
Regional banks had stepped in to fill the void left by other lenders. Who will replace them if they stop lending, too?