- December 1, 2011: Vol. 5, Number 11

To read this full article you need to be subscribed to Institutional Real Estate Europe

Filling the Void: Debt Funds Seek to Take Advantage of Limited Liquidity and Sizeable Funding Gap

by Tyson Freeman

Debt real estate funds were once viewed as a niche sector of the private closed-end real estate industry. No more.

Investors have flocked to debt investment strategies in search of attractive risk-adjusted returns in an uncertain, often volatile, post-crash commercial real estate market. Debt-focused funds have attracted lower absolute dollars than they did during the boom, but their percentage of the entire real estate fund universe has surged. Real estate debt fund managers across the risk spectrum argue that they are finding solid opportunities and that their funds are attracting capital at a healthy clip.

Industry watchers seem to agree that, as long as market fundamentals walk a tightrope and traditional debt providers remain cautious, there will be continued interest and opportunities in real estate debt.

Capital raised by debt funds to date in 2011 totals $18.8 billion (€13.6 billion) based on 13 fund

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy