REFIRE: Caerus beefs up eurozone debt fund by €47m

The Düsseldorf-headquartered Caerus Debt Investments, led by fund specialist and former INREV chairman Michael Morgenroth, has raised an additional €47m for the firm's Archimedes real estate debt fund, bringing the total up to €129m for the fund.

According to Caerus, the new equity commitment for the senior/whole-loan vehicle focused on the eurozone comes from a 'major German insurance company,' and an increase by an existing investor.

The capital injection lifts the equity available to Archimedes to €129 mln. In the first closing, a large German insurance company and a pension fund subscribed a total of €82m to the fund. The fund is expected to have a value of €300m, structured as a pool fund and targeting senior collateralised loans with a loan-to-value ratio of up to 80%. The regional focus is on the core eurozone states, limited to Germany, Austria and Switzerland, as well as the Benelux countries.

Investors can participate via the new Luxembourg-registered Caerus real estate debt fund with a minimum subscription amount of €10m. The target IRR is 3% to 4% per annum.

Michael Morgenroth, CEO of Caerus Debt Investments, said: 'No other asset class currently offers a more attractive risk-return ratio and a higher return, particularly for insurance companies, in relation to the equity securitisation required by Solvency II.'

The Caerus management, led by Michael Morgenroth with Patrick Züchner as chief investment officer, took over and renamed the company in a full management buy-out of the shares formerly held by Signa Holding in 2013. Shareholders in the company included Swiss private bank Reichmuth & Co. and Dupuis Asset Management.

Read full Article: REFIRE Online, 25 July 2017


Jochen Goetzelmann
Targa Communications GmbH
T 069 153 24 21-0