AXA IM Alts, raised more than €4b for its c. €24b global commercial real estate (CRE) debt platform over the past year, through the launch of new strategies and dedicated mandates.
Over the same period, AXA IM Alts invested c. €3b into investment opportunities across the entire capital stack, from senior whole loans to transitional lending facilities and junior loans.
Over a third of the €4b raised by AXA IM Alts came from new clients to the CRE debt platform, with the balance comprising commitments from existing institutional investors. AXA IM Alts raised capital from across the globe, from clients based in Europe, North America, and Asia. The c. €3b deployed during the year has been invested into loans secured against high-quality assets across multiple real estate asset classes, with the majority in the logistics, residential and data centre sectors, supported by megatrends such as digitalisation and decarbonisation.
AXA IM Alts expects the current fundamentals supporting the sector to continue into 2025, driving further opportunities to CRE lenders alongside increased transaction volumes in the real estate sector as the gap in price expectations of buyers and sellers continues to narrow, as well as refinancing.
Building on a 20+ year track record and strong expertise, AXA IM Alts is the most active CRE debt capital raiser in Europe, having invested over €60b into the sector since the inception of its real estate debt platform and with global AUM currently c. €24b in private real estate debt. Adapting its offering in line with the market evolution, the platform aims to provide clients with access to secure levels of income, whilst also aligning with macroeconomic and demographic trends to identify opportunities to generate a high rate of return through exposure to fast-growing sectors and geographies.
Florence Dard, Global Head of Client Group, Alts at AXA IM, commented: “This record capital raising on our Real Estate Debt Strategies reflects the growing investor appetite for private credit, including CRE debt, as well AXA IM Alts’ proven track record and reputation as a leading player in the senior and high-yield parts of the market. The higher returns delivered by the asset class in the current market environment have attracted new investors in Europe but also in North America and Asia, seeking yield pick-up and diversification to complement their existing private credit allocation. As the cycle progresses, AXA IM Alts’ CRE debt capabilities will continue to provide an attractive income diversification play.”
Antonio de Laurentiis, Global Head of Private Debt, Real Assets at AXA IM Alts, added: “Building on its strong track record, AXA IM Alts has a boots-on-the-ground presence in global target markets for CRE debt deployment, pairing in-depth expertise across asset classes with the wraparound benefits that come with being part of one of the largest real estate investment managers in the world. These factors have supported our significant capital-raising success over the past year and will continue to play an important role in the deployment of the balance of this latest fundraising milestone, as we seek to secure attractive returns through targeted lending into real estate projects underpinned by long-term structural trends.”
Image source - AXA AM Alts.
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