Funds
The CRECH III fund will invest in mainly UK and German real estate opportunities across the debt spectrum.
London-based hedge fund Cheyne Capital Management is launching a new debt-focused property fund. The Cheyne Real Estate Credit Holdings Fund III, also known as CRECH III, aims to capitalise on the continuing dislocation of the European real estate debt markets and meet the growing demand for real estate finance.
Like its predecessors, CRECH I and CRECH II, the CRECH III fund will invest in mainly UK and German real estate opportunities across the debt spectrum and via a range of instruments. These include senior loans, mezzanine loans, equity and special situations workouts.
The three Cheyne funds focus on mid-market borrowers constrained by more stringent lending criteria of traditional real estate lenders, as well as by the bias among non-bank players for larger ticket loans.
According to Stuart Fiertz, co-founder of Cheyne (along with Jonathan Lourie, in 2000), “As European banks continue to retreat from real estate lending due to increasing regulatory pressures, Cheyne is able to step into the void with a viable financing solution for mid-market borrowers, who are increasingly recognising the team’s ability to understand complex real estate financing needs and execute creative solutions in a short timeframe.”
Cheyne Capital’s ten-person real estate debt team is headed by Ravi Stickney with Graham Emmett as his investment partner. Cheyne describes its investment approach as “combining a comprehensive valuation of the underlying residential or commercial property and a detailed analysis of the debt structure in order to identify investments offering attractive yields and robust downside protection.”
