Independent investment advisor DRC Capital said it has held the final close of its third fund, DRC European Real Estate Debt Fund III (DRC ERED III) with total commitments of £600 mln (€680 mln), hitting its hard cap and surpassing its target fund size of £500 mln.
DRC ERED III raised its capital from a high quality investor base consisting primarily of public and private pension funds and insurance investors across Europe, North America and the Middle East. New investors constituted circa 40% of the commitments.
The fund will originate mezzanine and whole loan investments across the UK and Western Europe and across all major commercial real estate asset classes.
DRC Capital, which was founded in 2012 by Dale Lattanzio, Rob Clayton and Cyrus Korat, said the fund 'fulfils the ongoing demand for alternative debt in the European real estate sector'.
'DRC ERED III continues to take advantage of the market opportunity presented by the banking sector’s need to de-lever due to ongoing regulatory reform,' the company said.
Evercore acted as exclusive global placement agent for the fundraise.
DRC ERED III is the third fund in DRC Capital’s high yield debt strategy, which has raised £1.4 bn since its inception.