Duet Private Equity, the London-based alternatives firm, has raised another £75 million (€86 million; $120 million) for its mezzanine real estate debt investment strategy .
The firm took Duet Real Estate Finance Limited onto the London Stock Exchange yesterday, with the initial public offering (IPO) raising £50 million from institutional investors. It has also raised a further £25 million for its existing private limited partnership fund, which held a first close at the end of 2009 on €100 million.
Duet is one of few firms to successfully raise equity in Europe for mezzanine property debt investing. The vehicles were specifically set up to capitalise on the current lack of capital available to finance real estate, both existing and new investments.
The firm said £60 million of the vehicle had been invested to date.
Dale Lattanzio, managing director of Duet Private Equity, said in a statement: “There are many opportunities to be uncovered in the European commercial real estate debt market. Knowing where to look and executing them is the key.”
He added: “A number of investors continue to show interest in the strategy and we intend to work with these investors with a view to increasing the overall size of the fund.”
Evercore Private Funds Group acted as placement agent and adviser. Forum Partners, the London-based private equity real estate firm, is a seed investor and strategic partner in the fund.