This week, DRC Capital closed on its European Real Estate Debt Fund II, with total commitments in excess of total commitments in excess of £487 million. With private debt becoming more popular, especially in the UK market, PERE Research & Analytics will compare the fundraising market share of this strategy on a geographical basis.
While global debt doesn’t dominate the fundraising market, it holds a sizeable share. Of which, most of the fundraising capital follows a European debt strategy, or, more specifically, Western European debt. Actually, Western European debt has such a strong presence in Pan European debt, that the difference between the two is only a few select funds that total less than $3 billion. This further credits the popularity of Western Europe’s lending investments in real estate.
In Western European debt, most of the capital is raised by United Kingdom-based firms. Since the 2008 financial crisis, the UK has seen growing popularity in real estate debt. For example, we never saw £1 billion funds in 2008, such as AgFE’s AgFe Senior Debt Fund, or Henderson Global Investor’s Henderson Senior Secured Real Estate Debt Fund. With funds having larger targets than before, we’ll continue to expect strong fundraising figures in UK-based debt.