We spoke with Gentry about the registration and what it means for CRE.

GlobeSt.com: Why is this registration significant?

Gentry: FSS registration opens the fund to an entirely new country of investors. The timing of these capital inflows has coincided with a significant increase in the volume of deal flow that we're seeing from those seeking bridge loans to acquire or refinance US commercial real estate.

GlobeSt.com: Does this move signify a trend in globalization for the real estate market?

Gentry: The volume of foreign capital flowing into US commercial real estate has been on the rise for the past several years with no signs of slowing down. But I should clarify that our fund invests in commercial real estate debt, not equity, so the fund is more of a fixed-income product than an equity product, in our view. We've seen unprecedented central-bank intervention over the past several years that has resulted in an extended period of low-interest rates throughout the world. Despite central banks' attempts to stimulate economic growth by increasing the opportunity cost of hoarding cash, new waves of regulations have made banks reluctant to lend, opening the door for the so-called “shadow banking system” to fill the void, including various types of non-bank lenders such as Money360. In today's investment climate, equity markets are overvalued, and traditional fixed-income investments offer minimal yield, making commercial real estate debt funds attractive relative to more traditional asset classes. These types of funds are attracting investors' attention not only in the U.S. but also in foreign markets such as South Korea.

GlobeSt.com: What is the next logical move for your firm in this realm?

Gentry: South Korea is the latest in our company's strategic business plan to bolster its global reach. We are also beginning to tap into the capital markets in South Africa and China. But we're not going to overlook investors closer to home. For the first year of the fund's existence, we raised money almost exclusively from US-domiciled investors. That being said, the fund was designed for universal appeal to various types of accredited investors throughout the world with significant consideration given to international tax efficiency, so expanding to overseas markets was a logical next step.

GlobeSt.com: What else should our readers know about the registration?

Gentry: The level of scrutiny going into the application process for FSS registration is high. We feel that the successful outcome speaks to the fund's institutional caliber.

This article does not constitute an advertisement, solicitation, or an offer to buy any security or instrument or to participate in any trading strategy. No representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any rankings, valuations, forecasts, targets, estimates, opinions or projections contained in the article.

IRVINE, CA—Commingled funds are attracting investors' attention not only in the US, but also in foreign markets such as South Korea, Money360's CEO and founder Evan Gentry tells GlobeSt.com. A commercial real estate debt fund managed by Money360 affiliate M360 Advisors has successfully registered with the South Korea Financial Supervisory Service. FSS registration allows South Korean hedge funds, corporations, pension funds, insurance companies and other institutional investors to participate in the fund.

Since becoming registered, the fund has received more than $65 million to date from one of South Korea's oldest and largest financial institutions, and M360 anticipates receiving more than $250 million in aggregate throughout the first half of 2017. M360 Advisors currently works with foreign investors from South Korea, China, Singapore, South Africa, Europe, Canada, the Netherlands and Kuwait, with further expansion underway. South Korea is the latest in the company's strategic business plan to bolster its global reach, with an intensified push into South Africa and China planned in the near future.

The fund provides investors with a short-duration, high-yield fixed-income alternative to traditional fixed-income investments. The fund invests in bridge loans collateralized by U.S. commercial real estate property secured with a first-priority lien at conservative loan-to-value ratios.

Gentry said the level of scrutiny going into the application process for FSS registration is high, and Money360 is one of the only marketplace lending platforms with an affiliated private debt fund to be sanctioned by the FSS.

We spoke with Gentry about the registration and what it means for CRE.

GlobeSt.com: Why is this registration significant?

Gentry: FSS registration opens the fund to an entirely new country of investors. The timing of these capital inflows has coincided with a significant increase in the volume of deal flow that we're seeing from those seeking bridge loans to acquire or refinance US commercial real estate.

GlobeSt.com: Does this move signify a trend in globalization for the real estate market?

Gentry: The volume of foreign capital flowing into US commercial real estate has been on the rise for the past several years with no signs of slowing down. But I should clarify that our fund invests in commercial real estate debt, not equity, so the fund is more of a fixed-income product than an equity product, in our view. We've seen unprecedented central-bank intervention over the past several years that has resulted in an extended period of low-interest rates throughout the world. Despite central banks' attempts to stimulate economic growth by increasing the opportunity cost of hoarding cash, new waves of regulations have made banks reluctant to lend, opening the door for the so-called “shadow banking system” to fill the void, including various types of non-bank lenders such as Money360. In today's investment climate, equity markets are overvalued, and traditional fixed-income investments offer minimal yield, making commercial real estate debt funds attractive relative to more traditional asset classes. These types of funds are attracting investors' attention not only in the U.S. but also in foreign markets such as South Korea.

GlobeSt.com: What is the next logical move for your firm in this realm?

Gentry: South Korea is the latest in our company's strategic business plan to bolster its global reach. We are also beginning to tap into the capital markets in South Africa and China. But we're not going to overlook investors closer to home. For the first year of the fund's existence, we raised money almost exclusively from US-domiciled investors. That being said, the fund was designed for universal appeal to various types of accredited investors throughout the world with significant consideration given to international tax efficiency, so expanding to overseas markets was a logical next step.

GlobeSt.com: What else should our readers know about the registration?

Gentry: The level of scrutiny going into the application process for FSS registration is high. We feel that the successful outcome speaks to the fund's institutional caliber.

This article does not constitute an advertisement, solicitation, or an offer to buy any security or instrument or to participate in any trading strategy. No representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any rankings, valuations, forecasts, targets, estimates, opinions or projections contained in the article.