Invesco Real Estate launches its first European debt fund with initial €1b fundraise target

Invesco Real Estate has launched its first real estate debt fund in Europe.

The Invesco Commercial Mortgage Income – Europe FCP RAIF (CMI Europe) is a Luxembourg-domiciled, open-ended fund with a €1 billion ($1.1 billion) initial fundraising target. It is primarily backed by insurance capital, demonstrating the strategy’s attractiveness for insurance firms’ Solvency II requirements.

The fund, which will prioritize lending on sustainable assets with prime ESG profiles, has already completed its inaugural transaction: a senior loan facility to finance a pipeline of six French and three Spanish logistics facilities, all pre-let to one of the world’s largest online retailers.

Unusual in the European private debt fund market, the open-ended approach marks an evolution in the asset class in Europe by providing greater liquidity for investors. The fund aims to offer institutional investors a stable, high-yielding income stream and attractive risk-adjusted ret