Zencap eyes €100m for real estate debt fund

The firm, best known as a distressed debt investor, is branching out into real estate debt financing with the launch of its latest fund.

Zencap Asset Management has launched a new mezzanine fund focused on real estate in Western Europe.

The team, led by chief executive Richard Jacquet and deputy CEOs Thomas Piget and Victoire Blazsin, is looking to raise €100 million, Piget told PERE's sister publication Private Debt Investor.

Zencap has until the end of August 2014 to raise the capital, and already has LPs on board. The firm is targeting a range of LPs from pension funds and insurers to high net worth individuals, private banks and family offices.

“There’s a gap in the market that we’re trying to address with this fund,” Piget told PDI. “Banks and senior debt providers are willing to provide 65 percent to 70 percent loan to value on core real estate assets, but if sponsors aren’t willing to provide 30 percent to 35 percent equity on a deal, we can help to close the gap.”

Zencap’s fund will focus on Western Europe, and will look to invest in deals up to a maximum size of around €100 million, typically providing between €2 million and €15 million of mezzanine financing. It is targeting returns of around 10 percent.

Paris-based Zencap is part of asset manager OFI Group and manages more than €50 billion.