Accompanying PERE’s first special report on debt funds is our inaugural top 50 ranking of global private real estate debt fund managers – RED 50 for short.

Compiled by our colleagues in the PERE research & analytics team, the list is based on the capital raised for debt issuance funds between 2014 and 2018. And a familiar name occupies the number one spot – Blackstone. North American-based managers, in fact, dominate the ranking – 32 feature in total, likely a reflection of the maturity of the market stateside compared to other regions.

European managers take up 16 places in RED 50 with London-headquartered ICG-Longbow the region’s top dog in third place followed by M&G Investments in fourth and DRC Capital falling just outside the top 10 in eleventh position. Asia-Pacific-based fund managers fare less well, with just two managers – Melbourne-headquartered Qualitas and Japan’s Diamond Realty Management –  in RED 50.

Now, we continue our countdown…

29

Madison Realty Capital

$1.45 billion
New York

Originates senior secured and mezzanine debt as well as preferred equity, used for construction, acquisition and refinancing of commercial real estate.

This firm is currently in the midst of raising its fourth real estate credit fund with a $1 billion target according to an SEC filing. Madison Realty Capital Debt Fund IV, once fully closed, will be significantly bigger than its predecessor fund, which raised $695 million in May 2016.

 

28

Tyndaris Real Estate

$1.51 billion
London

Tyndaris Real Estate is a direct lender and credit investor with €1.2 billion of assets under management. The business is predominately focused on the European mid-market, where supply-demand imbalances persist, providing a lender-friendly environment. Tyndaris has a flexible mandate to invest across the capital structure including whole loans, subordinate loans and preferred equity. It relies primarily on direct channels to originate investment opportunities. Tyndaris Real Estate has a dedicated investment team of 11 professionals based in London and Madrid.

 

27

Atalaya Capital Management

$1.52 billion
New York

The manager invests in all major commercial and residential property types across strategies, including bridge and transitional loans, construction loans, first mortgages, mezzanine debt, and secondary performing and NPLs.

It recently provided a construction loan and preferred equity to finance the development of the new flagship Ritz-Carlton hotel in Manhattan’s NoMad neighborhood. Young Kwon, managing director, leads the team.

 

26

Ares Management

$1.59 billion
Los Angeles

The Ares real estate debt platform directly originates and invests in financing opportunities for owners and operators of US commercial real estate. Ares also invests through a specialty finance company, Ares Commercial Real Estate Corporation, which is primarily focused on directly originating, managing and investing in a diversified portfolio of commercial real estate debt-related investments. Bill Benjamin and Jamie Henderson, lead the team.

 

25

DWS

$1.65 billion
Frankfurt

Asset management firm DWS, formerly known as Deutsche Asset Management, invests in the full spectrum of debt strategies, including B-Notes, mezzanine loans and preferred equity, through DWS’s direct investments team and capital markets group.

The team is led by Todd Henderson, head of real estate for the Americas, and Clemens Schaefer, head of real estate for Europe, who took up the position in the past year.

 

24

Rialto Capital Management

$1.96 billion
Miami

Focused on the US market, the firm has raised three flagship opportunistic funds in addition to numerous direct lending and CMBS investments funds and separate accounts. It invests in newly issued and secondary CMBS bonds and also focuses on distressed and special situations, and direct lending, including mezzanine and floating rate debt. The firm is led by CEO Jeff Krasnoff and president Jay Mantz.

 

23

Torchlight Investors

$2.02 billion
New York

Torchlight is pursuing investments across the spectrum of debt and other interests relating to commercial real estate, including senior and mezzanine mortgage loans, CMBS, preferred equity and equity positions.

Recent deals included $159 million of senior mortgage and mezzanine financing on two Class-A office buildings in Charlotte, North Carolina, and Sarasota, Florida.

Torchlight, led by founder Daniel Heflin, is currently raising Torchlight Debt Opportunity Fund VI.

 

22

Cheyne Capital Management

$2.12 billion
London

Cheyne invests in European real estate capital. It closed its fifth real estate credit fund, Cheyne Real Estate Credit Fund V, in July 2018 at its hard-cap of £600 million ($799 million; €704 million).

The London-based firm, led by Jonathan Lourie, co-founder, CEO and CIO, and Stuart Fiertz, co-founder, president and director of research, has been involved in direct bilateral lending, investments in securitized mortgage-backed securities and in a limited number of equity participations.

 

23

Torchlight Investors

$2.02 billion
New York

Torchlight is pursuing investments across the spectrum of debt and other interests relating to commercial real estate, including senior and mezzanine mortgage loans, CMBS, preferred equity and equity positions.

Recent deals included $159 million of senior mortgage and mezzanine financing on two Class-A office buildings in Charlotte, North Carolina, and Sarasota, Florida.

Torchlight, led by founder Daniel Heflin, is currently raising Torchlight Debt Opportunity Fund VI.

 

22

Cheyne Capital Management

$2.12 billion
London

Cheyne invests in European real estate capital. It closed its fifth real estate credit fund, Cheyne Real Estate Credit Fund V, in July 2018 at its hard-cap of £600 million ($799 million; €704 million).

The London-based firm, led by Jonathan Lourie, co-founder, CEO and CIO, and Stuart Fiertz, co-founder, president and director of research, has been involved in direct bilateral lending, investments in securitized mortgage-backed securities and in a limited number of equity participations.

 

21

Caerus Debt Investments

$2.17 billion
Düsseldorf

Caerus Invests in German-speaking core markets and the Benelux countries with a focus on whole loans and mezzanine financing for office, hotel and residential buildings.

In 2018, the firm granted more than €370 million of real estate-secured loans. The largest transaction was a whole-loan financing of nearly €120 million secured by a diversified residential property portfolio in Germany. Michael Morgenroth, chief executive, and Patrick Züchner, chief investment officer, lead the team.