First Eagle Investments has launched an actual property debt fund that invests throughout non-public and public credit score alternatives.
The First Eagle Actual Property Debt Fund is managed by Napier Park International Capital, which First Eagle acquired in 2022.
The interval fund’s focus is on short-duration property throughout residential actual property lending markets, that it says gives entry to a spread of credit score alternatives that aren’t sometimes out there to retail traders.
Learn extra: First Eagle launches non-public credit score fund with iCapital
On the non-public credit score aspect, the fund will put money into residential transitional loans – akin to bridging loans – and land-banking transactions, which offer finance to homebuilders to handle land stock for new-home improvement.
And inside public credit score, the fund will put money into structured credit score securities backed by swimming pools of underlying mortgage loans.
The fund is structured as a closed-end interval fund and shall be taxed as an actual property funding belief to offer traders with beneficial tax therapy.
Learn extra: Genstar Capital takes majority share in First Eagle Investments
“We consider that long-term secular drivers resembling demographic tailwinds, a persistent housing provide scarcity and the continued want for financing current a powerful, differentiated alternative within the residential actual property market,” mentioned Rajesh Agarwal, portfolio supervisor of the true property debt fund.
“Recognising the regulatory headwinds going through standard lenders that traditionally served this house, we see a sturdy alternative for various credit score corporations like ourselves to offer much-needed capital to the residential actual property market and probably generate enticing risk-adjusted returns and present revenue for our traders.”
The Actual Property Debt Fund is First Eagle’s third interval fund and the primary managed by Napier Park.
New York-headquartered First Eagle has round $152bn (£112.3bn) in property below administration.
Learn extra: Blackstone to promote First Eagle Funding Administration
