Union Investment is investing in German fund investment advisor aam2cred Debt Investments, a specialist in private real estate debt.
It said it would initially take a 10% stake, with the intention of gradually increasing its share over the coming years.
“Private debt is a high-growth market within asset management and aam2cred has a great deal of expertise in mezzanine and whole loan finance within the real estate market,” said Hans Joachim Reinke, CEO of Union Investment.
“By combining the expertise of Union Investment with that of aam2cred, we will be able to offer our institutional investors innovative and bespoke solutions for profitable investments at a time of low interest rates,” he added.
The plan is for Union to launch a range of mezzanine and whole loan funds, with aam2cred – formerly known as aamundo Fund Management GmbH – primarily responsible for the sourcing and management of the credit portfolio and investment advice for the funds.
aam2cred operates in Germany, Austria and Switzerland and has offices in Frankfurt am Main and Hamburg. Nico B. Rottke, a member of aam2cred’s board of managing directors, said the team saw itself as “highly professional specialists in mezzanine and whole loan finance for the real estate sector and […] partners to property developers and investors”.
Tikehau impact fund draws EU resources
Tikehau Capital has raised some €100m for a first close of its impact lending fund, with the European Investment Fund (EIF) as an anchor investor alongside institutional investors.
The fund is part of Tikehau Capital’s private debt platform and focuses on investment in European SMEs that “contribute to the sustainable economic transition in Europe through their offering, their resource management, or their processes”.
The EIF participation fund uses resources from the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.
One of the aims of its involvement is to catalyse involvement of new investors looking for investment opportunities for their allocations targeting contribution to the UN Sustainable Development Goals.
EIF chief executive officer Alain Godard said: “Through its diversified debt funds division, EIF seeks to support alternative managers to foster more private capital towards the lower end of the market, with bespoke financing solutions. Our cooperation with Tikehau Capital with the support of EFSI demonstrates Europe’s strong commitment to social development, in the broader context of the EU’s green transition.”
Nathalie Bleunven, head of corporate lending at €27bn Tikehau Capital, said the EIF’s investment would be an important factor in ensuring the success of its impact lending fund.
“With respect to our strategy to align our interests with those of our investor partners, we have also committed our own balance sheet. I also would like to thank the other institutional investors for their commitment in the fund and for the trust they have placed in us.”