DRC has raised and invested in excess of €550m in its senior debt strategy and is currently capital raising for the fourth (UK) and fifth (Pan-European) funds in the series.
The strategy provided stabilised income yields to investors on portfolios of good quality, core plus assets where current banking regulatory regimes make financing by the banks difficult due to restrictions on the amount of leverage allowable under Basel II and Basel III.
The first three senior debt funds, raised in 2014-2016, are fully invested with 53 investments completed across the three funds.
The fund targets a Gross IRR of 4-5% and annualized cash income of 3.5% per annum.
A growing demand for this product comes from Fixed Income and Insurance investors looking for yield during periods of low interest rates.