Rockpoint Group, the US firm, has created a joint venture with London’s Longbow Real Estate Capital to invest in UK property.
Rockpoint’s capital is coming out of its $2.5 billion global fund. Initially the joint venture will be worth £100 million (€123 million; $157 million).
The agreement, signed this week, will see Rockpoint and debt specialist Longbow invest together in debt opportunities, secondary commercial mortgage backed securities as well as recapitising property companies.
A host of private equity firms have already formulated plans to invest in debt in Europe, including JER Partners, AREA Property Partners (formerly Apollo Real Estate Advisors), and The Blackstone Group.
Rockpoint raised Rockpoint Real Estate Fund III in April this year. It is targeting the US and select markets around the world. The firm was formed in 2003 by former Westbrook Real Estate Partners founding members Bill Walton, Keith Gelb, Pat Fox, Greg Hartman and Jonathan Paul. The five still manage funds raised by Westbrook Real Estate Partners prior to Rockpoint's inception.