Urban Partners secures €136m first close for fourth Velo Capital fund

Urban Partners has held a €136 million ($148 million) first close of a new fund for its alternative credit adviser Velo Capital.

The fund, Velo Mezzanine Credit Fund (VMC) is Velo Capital’s fourth advisory mandate. The closed-end fund is targeting net IRRs of 10 percent or more by investing in real estate developments and existing assets across Northern Europe, including Germany and the Nordics.

Velo Capital’s focus on green finance through the new fund supports Urban Partners’ strategy of drawing on constructive capital and expertise from its various arms to respond to the social, economic, health, and environmental challenges faced by cities.

Offering predominantly mezzanine loans, VMC will provide green financing to drive sustainability across the capital structure, with “brown to green” projects prioritized as a key pillar of the investment strategy.

“In the current market, some banks are pulling back. They are leaving a financing gap th