Successful First Closing of the Prime Real Estate European Debt Fund

October 28, 2024

Whole loan fund with defensive investment strategy and attractive regular distributions, specifically tailored to the current market environment
Focus on European core markets with broad diversification across relevant submarkets
First investments planned for Q4 2024
Strong, long-term track record of the investment team

Prime Capital AG, the alternative asset specialist with a focus on Continental Europe that has EUR 4.3bn Assets under Management as well as EUR 8.4bn Assets under Administration across different asset classes, proudly announces the successful first closing of its Prime Real Estate European Debt Fund in the high double-digit million EUR-range. The Prime Real Estate European Debt Fund focuses on whole loan financing in the sectors residential, logistics, and selectively ESG-compliant office buildings in Benelux, France, Germany, Austria, and the Nordics. The open-ended Article 8 fund (classified according to EU SFDR) primarily targets existing properties in very good locations and with strong running cash flows, aiming for a long-term target volume of at least EUR 300m.

The current market environment is characterized by factors such as tightened banking regulations and high interest rates. The withdrawal of banks from the financing market, especially in the real estate sector, has created a significant financing gap. As a result, real estate private debt funds are experiencing significantly increased demand, allowing them to exercise a stronger negotiating position with borrowers, and focus on the most attractive transactions during deal selection. Prime Capital is seizing this opportunity to implement real estate private debt financing for its investors, offering an extremely attractive risk-return profile with predictable returns. The Prime Real Estate European Debt Fund is currently targeting a cash yield of 6.5% p.a.

“Our defensive European real estate private debt strategy perfectly meets the current needs of the market by precisely addressing the present risk environment. We focus on building a diversified portfolio of whole loan financings in the largest and most established real estate sectors, as well as in the most stable and strongest economies in Continental Europe,” says Stefan Futschik, Head of Private Debt at Prime Capital. “In this challenging market environment, we benefit from our many years of experience and our excellent network of high-quality sponsors, which we have built up through direct sourcing. Our fund offers investors an attractive combination of a defensive investment strategy, steady income, and first-ranking collateral. The first investments of the Prime Real Estate European Debt Fund are expected to be made this year,” he adds.

“We are pleased that we have achieved a successful first closing in a challenging market and fundraising environment after only a few months, and we are confident that the Prime Real Estate European Debt Fund is an attractive investment for institutional investors,” adds Andreas Kalusche, CEO at Prime Capital. “We plan further fundraising activities in the coming weeks, which can also be realized at short notice due to the open-ended structure of the Prime Real Estate European Debt Fund. Within a few days this is the second successful funds closing of Prime Capital, after we had recently announced the third closing of our second green energy infrastructure fund.”

About Prime Capital:

Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure including Renewable Energies, and Private Debt. Furthermore, the company offers Access Solutions. Prime Capital currently employs about 125 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.

As of June 2024, Prime Capital has approximately EUR 4.3bn Assets under Management as well as EUR 8.4bn Assets under Administration.

For additional information, quotes or requests please contact:

Prime Capital AG

Andreas Kalusche, CEO

Questions regarding the content please contact Stefan Futschik

Tel: 0049 69 9686 984 307

Stefan.Futschik@primecapital-ag.com

www.primecapital-ag.com

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