Financial services firm Alantra, which was launched in Spain as N+1 in 2001, has partnered with Spanish family office Ion Ion to support the growth of its European private debt platform, which includes real estate debt funds.

 Ion Ion, a leading family office in Spain, is controlled by Jon Riberas, the owner of Spanish automotive company Gestamp. The firm will acquire a strategic equity stake in the Spanish manager’s private debt business by way of a capital increase. Alantra said the deal will boost its financial resources for its expansion across Europe.

As part of the deal, the family office will seed existing and future private debt vehicles including its second real estate debt fund, Alteralia Real Estate Debt II fund. Speaking to Real Estate Capital Europe, Jaime Cano, partner in Alantra’s private debt business, said the outfit has been placed in a holding company under Ion Ion.

This week’s announcement follows the news Alantra has launched Alteralia Real Estate Debt II, targeting €200 million in equity commitments. Cano added the firm will begin fundraising for the fund in the second quarter of the year. It is aiming to hold a first close in Q3 with the aim of raising between €80 million to €100 million, including an unconfirmed volume of capital from Ion Ion.

 “Real estate debt is one of the pillars to further grow the private debt platform in Europe, alongside other debt strategies. We are aiming to become one of the leading GPs in the European mid-market space, ” Cano said. “We also aspire to attract large and international LPs/investors to our multi-credit platform with the goal of increasing the assets under management in the short and medium term, ” he added.

 “Given the current market conditions, our target net return for real estate debt is within the low teens. Additionally, we are exploring more opportunistic real estate debt transactions through our Credit Opportunities fund, where the target returns are in the mid-teens.”

Through the second fund, the firm will have a Western European focus and will aim to diversify its exposure – which is largely focused on Spain. It will provide loans for acquiring real estate assets, refinancing existing debt, or funding renovation or repositioning works. Ticket sizes will range between €10 million and €30 million, with loan-to-values up to 80 percent.

As well as real estate debt, Alantra’s private debt platform invests in corporate direct lending and midmarket credit opportunities.

Original Story: Real Estate Capital Europe
Author: Mark Mwaungulu
Edition: Prime Yield
Photo: Alantra