ICG-Longbow, Intermediate Capital Group’s real estate asset management division, has closed its fifth partnership capital fund, ICG-Longbow UK Real Estate Debt Investments V SCSP, with £928 mln (€1.09 bn) of capital.
According to the firm, fund V is backed by a high quality and diverse group of limited partners, including new and repeat institutional investors from the UK, Europe, Asia and the Middle East.
Martin Wheeler, co-head of ICG-Longbow said: 'The success of this fundraise demonstrates that investors remain confident in the long-term prospects for UK commercial real estate, our defensive strategy and investment track record despite the challenging economic environment and Brexit uncertainty.'
The fund focuses primarily on investing in self-originated whole loans secured against UK commercial property. Additionally, it can invest in mezzanine debt, preferred equity and development loans.
To date, the fund has committed £455 mln in 10 transactions with loan sizes from £20 mln-100 mln. According to ICG-Longbow, the portfolio is highly defensive, focusing on a blend of alternative sectors including residential property and hotels, alongside office refurbishments and redevelopments. There is no exposure to the retail sector.
Kevin Crowley, head of partnership capital UK at ICG-Longbow said: 'Current market uncertainty is presenting interesting opportunities for those managing flexible capital such as fund V. With 49% of the fund invested to date we have the flexibility to continue with our highly-selective deployment programme and only invest where we have strong levels of conviction.'
As at 30 September 2019, ICG-Longbow has over £3.7 bn of assets under management across its four strategies of senior debt, partnership capital, residential development finance and sale and leaseback.