Dallas-based Valeo Fund is planning to raise $150 million to capitalise on opportunities in the US thrown up by a torrent of incoming debt maturities.
The fund, which was established last month, said yesterday it aims to raise equity commitments from high net worth individuals, private wealth managers and other investors in the UK and wider Europe.
The fund was devised to take advantage of large swathes of investment opportunities expected to become available in the US in the immediate future as real estate owners struggle to meet their loan obligations.
It said in an announcement: “Valeo is looking to capitalise on the significant investment opportunity in US commercial real estate, as nearly $1.5 trillion in sector loans are set to mature through to the end of 2013, according to a recent report by Deutsche Bank.”
The fund will typically make investments of $15 million to $55 million in “demand driven and supply constrained” markets. It will focus on offices, retail, medical-themed real estate as well as debt instruments secured by assets in these sectors.
It said in its announcement: “debt maturities, along with additional necessary capital requirements, are a catalyst to deal-flow. Without the funding to sustain these deals, a fundamental re-pricing of the market is taking place, creating attractive opportunities for savvy investors.”
Hamm said the fund was aimed at providing an investment channel for “sophisticated investors” who did not want to be part of a “much large institutional fund”.