Torchlight Debt Opportunity Fund terms revealed

The Arkansas Teacher Retirement System has confirmed a commitment to the new Torchlight Debt Opportunity Fund.

  • Fund name: Torchlight Debt Opportunity Fund VII
  • Target size: $1.50 billion
  • Stage of fundraising: Fund launched
  • Predecessor fund: Torchlight Debt Opportunity Fund VI ($1.68 billion)
  • Net IRR: 10-12%

Torchlight Investors is fundraising for its seventh flagship real estate debt vehicle, according to meeting minutes issued by the Arkansas Teacher Retirement System. The US-headquartered fund manager closed its sixth fund in 2019 on $1.68 billion. The new fund’s debt strategy is expected to be collateralized traditional property types plus hotels and student housing. The fund is targeting a first close on June 30, 2020, of $400 million-$500 million.