AXA Investment Managers – Real Assets has closed its tenth commercial real estate senior debt fund, CRE Senior 10, having achieved its capped target of circa €1.5bn (£1.4bn).
This fund closing takes AXA IM – Real Assets’ total debt commitments to more than €14bn.
More than 25% (circa €400m) of the fund has already been deployed, a quarter of which is through transactions in the US, with CRE Senior 10 being AXA IM – Real Assets’ first debt fund to have an initial mandate in the region, with an allocation of up to 25% of the total fund permitted.
AXA IM – Real Assets said this expanded reach was supported by the continuing strength of the US economy and underpins its “360-degree approach” to investing in real assets, by sourcing opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments.
Commitments for the fund have been received from 19 institutional investors, spread across various European countries, 84% of which have invested previously in AXA IM – Real Assets’ real estate debt platform, as well as four new clients.
Timothé Rauly, head of funds group at AXA IM – Real Assets, said: “Reaching our tenth debt fund is a milestone achievement and shows the scale of our business together with the commitment of our clients. The fact that we have already deployed over 25% demonstrates our ability to continue to deliver on our plans.
“It also reinforces our strategy of capping our fund raise to ensure our clients’ funds are not sitting idle but are deployed as rapidly and prudently as possible. We have already started deploying funds in the US through mortgage loans and bonds in line with our policy of broader allocation in the country.”
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