Wrightwood Capital has closed its second debt fund, the High Yield Partners II Fund, on $243 million.
Chicago-based firm said in a statement the fund would be used to originate mezzanine loans and make preferred equity investments for real estate recapitalisations, acquisitions and some new property developments.
The fund close follows on from Wrightwood’s acquisition last October of fund manager Hanover Financial Company.
Hanover provided joint venture capital for property investors and developers. Capital commitments to Hanover’s latest vehicle, Hanover Real Estate Partners Fund III, were transferred to High Yield Partners II Fund.
Michael Burd, Wrightwood’s managing director of corporate development, told SNL Financial last September the firm had around $300 million of capital on its balance sheet but that it remained “very cautious” about the economy and capital markets.
The problems that were being seen in late 2008 would continue well into 2009, he predicted at the time, adding: “We do think it presents us with interesting lending and investment opportunities both within our portfolio business and within our asset management business because there are relatively few competitors out there.”