Private debt
Senior real estate debt
This strategy invests in commercial mortgages secured against global real estate assets, with interest typically paid by rental income from the underlying properties.
Senior debt, of investment grade quality, often has a first-ranking charge over the asset, ensuring that in any potential default scenario lenders have recourse to the underlying properties.
This strategy aims to offer attractive risk-adjusted returns with regular income and security over tangible assets in a large and established market. Loans of this type are typically able to achieve a premium over equivalently rated corporate debt due to their illiquid nature, with specific covenant and security packages providing downside protection.
Since 2008, our specialist team has invested across the capital structure, and originates whole loans, enabling clients to allocate capital at scale with the flexibility to target a range of risk and return profiles. Our exacting underwriting standards and carefully negotiated financial covenants are designed to offer significant downside protection against potential deterioration in property fundamentals.