Thu, Aug 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Second real estate debt fund for Montello

Tuesday, January 08, 2013

Christian Faes
Opalesque Industry Update - London based financial firm Montello Capital Partners has launched its second real estate debt fund. The new Montello Development Finance LP will focus on lending to London residential property developers.

The new fund, which has been seeded largely by existing Montello investors, builds on the 4 year track record that Montello has established in the short term lending market in the UK. The new fund will also add to the £50 million of funds under management for the firm.

Montellos first fund, the Montello Income Fund, provides investors with a fixed return of 8.5% pa, and is secured by short term first charge loans against London residential property.

The new Montello Development Finance LP, is more tailored to high net worth, sophisticated and family office investors. It provides investors with an increased fixed return of 10% pa, and lends on both a first and second charge basis against small scheme residential property developments in London. However, the new fund requires a two year commitment from investors.

Christian Faes, Managing Director of Montello, commented: Investing in short term loans secured against residential property in London, has understandably proved to be a very popular investment strategy in the current market. However, there are not that many operators that allow investors access to this investment opportunity in the same way that Montello does.

We decided to launch the new development finance fund because we had a number of our existing investors that were saying to us that they were keen to go a little higher up the risk curve. We have consistently been able to construct a very conservative portfolio for our existing Montello Income Fund, with an average LTV across the book of around 60% - and that is exclusively lending on a first charge basis.

We have listened to our investors, and put together the new fund which will be an exciting addition to our existing investor offerings.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius