Quadrant Real Estate Advisors has raised $120m for a US-focused real estate debt fund as it aims for a first close.
The Atlanta-based firm is looking to raise up to $700m for its Enhanced Debt Fund, IP Real Estate understands.
US pension funds are among those to have backed the strategy, which will originate and securitise fixed-rate real estate loans in the US. A first close of the fund is due this quarter.
Quadrant will look to sell off lower-yielding senior tranches and retain junior loans, which traditionally offer higher returns.
The move by Quadrant, which is also active in the UK and Ireland, comes at a time of yield compression in US debt market, with mezzanine lenders less active and leverage levels rising.
As , debt investing is once again popular in the US, with specialised entrants filling the void left by the withdrawal of banks hobbled by new risk regulation.
