Prime Meridian Capital Management has launched a new fund which will be dedicated to real estate investments.
The Prime Meridian Real Estate Lending Fund is the first of its kind within the alternative finance space globally. The new fund will offer investors a diversified, short duration real estate loan portfolio, with no hard lock-up. With the various closed end listed fund structures of the world increasingly struggling to pull in the kind of money that once they did, specialisation amongst funds was somewhat inevitable. Prime Meridian is one of the longest-standing fund managers within the marketplace lending sector, already operating in the consumer space (with leveraged and un-leveraged vehicles) and within the SME space.
The fund has been established to take advantage of burgeoning marketplace lending activity within the real estate space. Investors that are high on this particular portion of the industry have not previously had access to a dedicated fund structure. Prime Meridian is satisfying that need.
We last heard from Prime Meridian in late January, when it was announced that the company had secured an extra $200m in institutional funding commitments. At that time the company had just crossed the $100m mark in assets under management.
Don Davis, managing partner for Prime Meridian Capital Management, offered his thoughts on the new fund:
“We are very excited about the Prime Meridian Real Estate Lending Fund. Unlike so many investors and managers that chase yield at any cost, we carefully consider how to create the best risk adjusted portfolio by taking into account diversification of location and property types as well as first lien positions, strong LTV, and personal guarantees.”