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Union Bancaire Privée
Union Bancaire Privée has announced the first close of UBP Private Debt Fund III, which has raised more than €110 million. The strategy invests in privately sourced debt obligations.
The private debt team originates its transactions from the family office universe, an informal network of multi- and single-family offices and businesses backed by family money. The UBP Private Debt Fund III has a lifespan of 4.5 years and will return capital after a two-year investment period.
The target size is up to €300 million ($364 million), typically invested in debt transactions of €5–30 million with one- to three-year maturities.
The portfolio will be skewed towards real estate-related opportunities, with a focus on financing sectors that generate the long-term income streams currently in demand from institutional investors, including social and affordable housing, student housing and the private rental sector. The fund’s investors include HNW individuals, family offices, asset managers and institutional investors.
The strategy complements investments offered by UBP’s Private Markets Group. In 2019, the Geneva-based bank said that it was partnering with Rothschild & Co. This led to the launch of an equity fund for both private and institutional clients.
“The COVID-19 pandemic has had a dramatic global impact, causing substantial segmental dispersion and accelerating underlying trends. The policy response has driven yields down in public debt markets, encouraging investors to seek private debt strategies,” Colin Greene, head of UBP’s private debt team, said. “As private debt is not an homogeneous asset class, we will focus on those sectors we see as more resilient to the long-term fallout of COVID-19, including social and affordable housing, the private rental sector and B2B companies.”
The fund will have further closes in 2021, targeted at institutional investors. The final maturity of the fund is 4.5 years from 13 November 2020.