FINANCE: Retirement specialist LV= has selected AgFe to manage its maiden venture into direct real estate debt with a £1bn mandate.
The debt specialist will invest up to £1bn over the next four years into senior commercial mortgages as part LV=’s plan to build on its range of retirement income options alongside equity release and corporate bonds.
AgFe will originate fixed-rate, 5-20 year, bilateral loans ranging from £10m up to £100m.
Alongside the new £1bn mandate, AgFe is also planning to imminently complete a first close for another senior debt fund.
It has lined up three UK institutional investors to commit around £400m for the fund which will make 3-5-year floating rate loans. It is aiming to raise a total of £1bn for this fund from other investors.
Richard Rowney, managing director of LV= Life and Pensions, said: “We have chosen to enter into commercial mortgage lending as it fits both our business model and investment needs, and will mean LV= has an even more diversified asset class.
“This is a new venture for LV= and AgFe’s expertise and bespoke, client-oriented approach makes them the ideal partner to help support our retirement business’ investment strategy.”
bridget.o’connell@estatesgazette.com
