Pearlmark’s sixth mezzanine fund raises $300m by second close
Pearlmark has announced the second closing of its sixth high-yield credit investment fund, Pearlmark Mezzanine Realty Partners VI, with more than $300m (£236m) in commitments.
The fund’s current commitments build on its first closing of more than $185m in August 2024.
It expects to raise more than $400m by the time of its final close in the first quarter of 2025.
Loan sizes are expected to range from a minimum of $5m to $50m or greater in combination with co-investment capital on larger loan sizes.
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Pearlmark Mezz VI targets subordinated debt investments, fulfilling borrower demand for gap financing solutions on recapitalisations, acquisitions, and development projects in the top 30 US metropolitan areas with strong sponsorship.
The fund will primarily invest in multifamily and other adjacent sectors, including student housing, active senior, and build-for-rent communities, as well as in industrial/logistics sectors. The fund will also consider investments in mixed-use, medical office, and grocery-anchored retail properties.
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Pearlmark Mezz VI’s predecessor, Pearlmark Mezzanine Realty Partners V is nearly fully committed through 25 investments in high-yield credit with one final investment pending.
With continued focus in the middle-market space, Pearlmark has seen strong demand and transaction flow for this product, and the fund is anticipated to close on three investments by year-end.
“There continues to be strong appetite from institutional capital for attractive risk-return in our middle-market mezzanine market,” said Pearlmark managing principal and head of debt investments Doug Lyons, “and significant demand from sponsor/borrowers for the structured gap finance products Pearlmark offer.”
Pearlmark has originated more than $2.1bn across 162 high-yield debt and preferred equity investments over 23 years.
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