In a second closing, CAERUS Debt Investments AG (CAERUS) has raised a further 47 million Euro for its "Archimedes" senior/whole-loan real estate debt fund. Capital commitments for the fund now total 129 million Euro. The new capital will come from a major German insurance company and an increase by an existing investor. In the first closing, a large German insurance company and a pension fund subscribed a total of 82 million Euro of shares in Archimedes.
Investors can participate via the new CAERUS Real Estate Debt LUX S.C.A.-SICAV-SIF subfund, with a minimum subscription amount of 10 million Euro. The target interest rate is 3 to 4 % p. a. (IRR). The fund is expected to have a value of 300 million Euro.
Structured as a pool fund, the fund invests in senior collateralised loans on real estate, with a loan-to-value ratio of up to 80 %. The regional focus is on the core Eurozone states, limited to D-A-CH and the Benelux countries.
Explaining the attractiveness of Real Estate Debt as an asset class, Michael Morgenroth, CEO of CAERUS Debt Investments AG, 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."