Consistent with its five predecessor funds, PRECap VI will provide alternative finance across the capital stack, in the form of whole loans, mezzanine and preferred equity, targeting predictable income returns combined with capital upside through profit participation. The fund will consider investments ranging from about £10 million to over £100 million, working with experienced real estate sponsors across western Europe in specialized sectors for which its funding structures work particularly well.

PGIM Real Estate is the real estate investment business of PGIM, the global investment management business of Prudential Financial. A year ago, the brands Pramerica Real Estate—used outside of the Americas, Japan and Korea—and Prudential Real Estate Investors both were consolidated under the PGIM Real Estate moniker worldwide.

LONDON—PGIM Real Estate said Thursday it had closed fundraising for the latest in a series of funds geared toward private real estate debt. At north of £1 billion, Pramerica Real Estate Capital VI exceeded its target and is the largest of the series to date.

Notably, more than 80% of the capital for PRECap VI came in during the nine months following the UK's European Union referendum, better known as the Brexit vote. “We are delighted with the strength of investor participation, particularly after the Brexit vote,” says Andrew Radkiewicz, global head of debt strategies for PGIM Real Estate. “We saw a fundamental increase in commitments from institutional investors' real estate, private credit and alternative fixed income allocations, due to the sustainable risk adjusted returns offered by this asset class.”

Investors in the closed-end discretionary fund included leading public and private pension funds, sovereign wealth funds, and insurance companies from the Americas, Europe, the Middle East and Asia Pacific. PGIM Real Estate says the participants were drawn to PRECap VI's income-driven real estate debt strategy, targeting double-digit returns while providing downside protection.

PGIM Real Estate has been active in the private real estate debt space since 2010, and has raised and deployed more than £2 billion (or more than US$2.6 billion) of the debt over 60 transactions throughout Western Europe. “The demand for alternative funding sources continues to grow,” says Andrew Macland, head of PGIM Real Estate's UK business and European debt. “The scale of our capital raise provides much needed liquidity in a financing market that is increasingly restricted by regulatory and structural change. As a funding partner, we offer certainty and continuity to investors, developers and operators of real estate in Europe in this changing environment.”

Consistent with its five predecessor funds, PRECap VI will provide alternative finance across the capital stack, in the form of whole loans, mezzanine and preferred equity, targeting predictable income returns combined with capital upside through profit participation. The fund will consider investments ranging from about £10 million to over £100 million, working with experienced real estate sponsors across western Europe in specialized sectors for which its funding structures work particularly well.

PGIM Real Estate is the real estate investment business of PGIM, the global investment management business of Prudential Financial. A year ago, the brands Pramerica Real Estate—used outside of the Americas, Japan and Korea—and Prudential Real Estate Investors both were consolidated under the PGIM Real Estate moniker worldwide.