Investcorp Announces Commitments to Real Estate Debt
NEW YORK, May 15, 2012 /PRNewswire/ -- Investcorp's US-based real estate arm today announced it has received commitments to invest in US commercial real estate debt from several large institutions, including Akard Street Partners, an investment partnership operated by Hunt Realty Investments, Inc. with substantial funding from the Teacher Retirement System of Texas, as well from a significant UK-based pension scheme. In keeping with its commitment to co-investment, Investcorp will be investing alongside these institutions.
TriLyn Investment Management, LLC, a commercial real estate debt specialist and long-standing partner of Investcorp, will serve as a sub-advisor and will assist in identifying investments. In this capacity, TriLyn will be part of the investment team and will provide access to its wide network of industry contacts with respect to sourcing potential investments.
"The ability to attract world-class institutions in what continues to be a very challenging environment is a testament to the extraordinary efforts of our real estate group, as well as Investcorp's reputation in the real estate debt markets," said Jon Dracos, Head of Investcorp real estate. "Expanding our investor base is the next step in the growth of the Investcorp real estate platform."
The Investcorp/TriLyn team will actively target income-producing commercial and multi-family residential properties in major markets throughout the United States, with a focus on acquiring or originating senior mortgage loans, subordinated debt (B notes), mezzanine debt, and bridge loans secured directly or indirectly by commercial real estate. The team will aim to take advantage of a current shortfall in commercial mortgage financing by deploying capital at the higher end of loan-to-value ratios where it can find attractive risk-adjusted yields.
"There is over $2 trillion in commercial and multi-family real estate debt outstanding in the US and much of it will need to be refinanced in the next several years," said Christopher Hoeffel, Head of real estate debt investments at Investcorp. "In addition, traditional sources of financing such as Wall Street conduits and balance sheet lenders, including banks and life insurance companies, have either faced production constraints or have consolidated and contracted. As a result, the current environment has created significant opportunities for high-quality, performing debt investments that can be acquired or originated at attractive yields."
"We are looking forward to working with an esteemed group of institutional investors and to again partner with Investcorp," said Mark Antoncic, founder of TriLyn. "Investcorp and TriLyn share a common, value-oriented investment approach and history of working together to successfully capitalize on attractive real estate debt investment opportunities."
Investcorp is a leading provider and manager of alternative investment products. Investcorp has offices in New York, London and Bahrain and is publicly traded on the Bahrain Bourse (INVCORP). Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at December 31, 2011, Investcorp had $11.6 billion in assets under management. Further information is available at www.investcorp.com.
TriLyn was originally formed in 2002 by Mr. Antoncic as a principal and advisor in the area of debt-oriented real estate investments, including senior and subordinate structured investments, mezzanine debt and CMBS. Seeking to capitalize on market opportunities given shifting real estate dynamics and values, TriLyn has been involved in various sectors including office, resort, hotel, multi-family retail and industrial. TriLyn also provides strategic counsel and hands-on asset management on an advisory basis to assist institutional investors in preserving capital, enhancing value and mitigating risk over complete market cycles.