Investment manager ICG-Longbow has launched a £400m senior debt club.
The real estate debt specialist has put together a platform comprising four discretionary UK separate account mandates that will co-invest in senior loans. It is understood the £150m BBC pension fund mandate recently secured by the firm, as revealed by Estates Gazette, is part of this platform (10 May, p45).
The remaining £250m has been secured from two other UK pension funds and a fourth UK investor, all of which have contributed more than £50m to the platform.
The club will invest in newly originated senior loans of up to £75m with a maximum 65% LTV supported by a diverse portfolio of regional and London assets.
It will consider only bilateral loans with terms of between five to 10 years, which will be split pro rata between the investors.
The “highly defensive” product aims to offer investors a spread more than 200 bps higher than equivalent corporate bonds.
The platform will be run by former HBOS and UniCredit banker Trevor Holmes, who joined as a partner last year.
bridget.o’connell@estatesgazette.com
