AXA closes €1.5bn debt fund

By James Buckley - Wednesday, September 13, 2017 10:17

AXA Investment Managers - Real Assets has closed its tenth commercial real estate senior debt fund, CRE Senior 10, having achieved its capped target of c.€1.5bn.

The milestone fund closing takes AXA IM - Real Assets’ total debt commitments to over €14bn.

Over 25% (c.€400m) of the fund has already been deployed, a quarter of which is through transactions in the US, with CRE Senior 10 being AXA IM - Real Assets’ first debt fund to have an initial mandate in the region, with an allocation of up to 25% of the total fund permitted.

This expanded reach is supported by the continuing strength of the US economy and underpins AXA IM - Real Assets’ 360° approach to investing in real assets, by sourcing opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments.

Commitments for the fund have been received from 19 institutional investors, spread across various European countries, 84% of whom have invested previously in AXA IM - Real Assets’ real estate debt platform, as well as four new clients.

Timothé Rauly, Head of Funds Group at AXA IM - Real Assets, said: “Reaching our tenth debt fund is a milestone achievement and shows the scale of our business together with the commitment of our clients. The fact that we have already deployed over 25% demonstrates our ability to continue to deliver on our plans.

“It also reinforces our strategy of capping our fund raise to ensure our clients’ funds are not sitting idle but are deployed as rapidly and prudently as possible. We have already started deploying funds in the U.S. through mortgage loans and bonds in line with our policy of broader allocation in the country. With more than a decade of debt finance experience, we have the technical expertise and physical presence across key markets.

“This supports us in helping institutional investors navigate global markets as they seek to diversity by risk profile, income type, and geography.”

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