The Matrix Commercial Mortgage Fund, which is targeting initial equity of £200m, is a six year closed-ended Luxembourg Sicav.
Matrix said the fund will aim to exploit the funding gap in the 50%-75% loan-to-value range through the provision of new subordinated secured junior debt.
It will pay distributions quarterly and has an anticipated annual income yield of 7%-8% when fully invested and target returns of 12% net of management charges and costs. Minimum investment in the fund is £1m.
Fund manager Rick Gambetta said: “The European commercial property industry continues to face significant funding obstacles and the recent market volatility and concerns regarding sovereign risk have not made these any easier to overcome.
“With nearly half of the £244bn of outstanding debt against UK commercial property needing to be repaid over the next two years, and with all banks facing tighter regulatory capital constraints, Matrix believes that the severe imbalance between the supply and demand of debt will continue to provide an opportunity, not only for borrowers to find much needed debt terms, but also for investors to earn consistent, high risk adjusted income returns from secured junior debt.”
