CAERUS Debt Investments AG (CAERUS) is continuing to expand its senior-/whole-loan strategy by launching a Luxembourg-based Real Estate Senior-/Whole-Loan Fund.
Structured as a pool fund, analogous to the individual mandates already launched, the fund will be invested in senior collateralised loans on real estate, up to a lending limit of 80%. The regional focus is also unchanged (the Eurozone, concentrating on Germany, Austria, Switzerland and the Benelux countries). The target interest rate is 3 to 4% p.a. (IRR). The fund is projected to have a volume of €300m. The first closing is planned for the end of October 2016.
Investors could participate via the new CAERUS Real Estate Debt LUX S.C.A. - SICAV-SIF sub fund, called "Archimedes", from a subscription amount of €10m.
In the framework of individual instructions, several major institutional investors have already entrusted CAERUS, as investment adviser, with the implementation of senior/whole-loan strategies with a com-bined investment volume of €800m. Caerus has successfully placed around €700m of this as loans so far.
"For insurance companies, currently no other asset class offers a more attractive risk-return ratio and a higher return in relation to the equity securitisation required by Solvency II", explains Michael Mor-genroth, CEO of CAERUS Debt Investments AG.