New York Life Real Estate Investors (REI) announced the closing of its Madison Square Structured Debt Fund , a commingled, high yield real estate debt vehicle.
With nearly $500 million of committed capital, this closed-end fund will originate bridge loans collateralized by institutional-quality office, multifamily, industrial, retail, and other niche sector assets in primary and secondary markets in the United States.
The vehicle will originate roughly $1 billion of senior bridge loans in total.
John Lippmann, an industry veteran and head of structured debt at REI, serves as the portfolio manager for the Fund. Lippman and his team have originated nearly $5 billion of structured loans since 2012 and have established a very strong track record and pipeline.
“We believe that the new Madison Square Structured Debt Fund is well positioned to deliver attractive, risk-adjusted returns for investors in the face of global turbulence and real estate market disruption driven by the current capital market dynamics,” said Mr. Lippmann.
The Fund marks an important milestone in REI’s third-party investment management business while also helping New York Life to achieve additional portfolio diversification.
“We continue to focus on creating geographically and sector diversified investment solutions that offer a compelling value proposition to investors,” said Paul Behar, head of business development at REI.
“This program allows us to seek attractive current returns with a lower level of volatility, which resonates well with investors in the current economic environment.”