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Natixis AM and AEW Europe raise €240 million for their Senior European Loan Fund

Natixis AM and AEW Europe are combining forces to launch the Senior European Loan Fund [1], the first sub-fund of a closed-ended seven year fund structure investing in senior real estate loans [2]. On launch, the fund is completing a first close with commitments of €240 million and is targeting an investment capacity of €500 million.

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Targeted at professional investors (as defined in MiFID) and qualified institutional investors [3], the Senior European Loan Fund aims to deliver returns equivalent to investment grade bonds [4].

Dual investment strategy

Senior European Loan Fund will invest in senior real estate loans, financing high quality real estate assets including offices, retail and logistics, located in Europe and predominantly in France, Germany and the UK. The Fund will adopt a dual investment strategy comprising:
- financing new loans in partnership with banks, and
- purchasing existing loans.

Complementary expertise

Senior European Loan Fund is managed by Senior European Loan Management, a subsidiary of AEW Europe. The management company is advised by a team from Natixis Asset Management, consisting of two senior portfolio managers with a combined experience of over 25 years in fixed income, and by real estate debt specialists at AEW Europe.

A strategic partnership

Christian Delaire, CEO of AEW Europe, commented: "The real estate financing market is experiencing a structural change with a marked decrease in funding capacity of the banking system, creating an opportunity for the emergence of new participants in real estate debt. The creation of this fund aims to offer our clients access to this new market opportunity. I am also pleased to announce that the fund should complete its first investment shortly." "The combination of AEW Europe’s real estate skills and expertise with Natixis Asset Management’s track record in debt and fixed income provides our customers a unique and effective approach to this market," said Pascal Voisin, CEO of Natixis Asset Management.

Next Finance July 2012

Article also available in : English EN | français FR

Footnotes

[1] Senior European Loan Fund is a sub-fund of the Senior European Loan Fund SCA-SIF, a specialized investment fund under Luxembourg law.

[2] Senior debt benefits from priority payment and specific guarantees compared to other forms of subordinated debt.

[3] The subscription and acquisition of interests in the Senior European Loan Fund are restricted to certain types of institutional investors who meet the definition of Well Informed Investors as set out in the Luxembourg Law of 13 February 2007 relating to specialized investment funds.

[4] Investment grade bonds benefit from a credit rating of between AAA and BBB- according to Standard & Poor’s classification. They represent a low risk of default according to this agency.

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