BEVERLY HILLS, CA—Kennedy Wilson and Fairfax Financial Holdings have joined forces to create a $2 billion debt platform that will pursue first mortgage loans secured by real estate in the Western US, Ireland and the UK.

Asset manager Kennedy Wilson will co-invest alongside Fairfax with an average ownership of 20% in the investments, which will be made without leverage, and will earn customary management and performance fees.

This initiative is the latest endeavor in the two companies' long-standing relationship. Kennedy Wilson and Fairfax first invested together in 2010 when they acquired $250 million of real estate assets, including real estate secured loans and real property. Over the past decade, the companies have partnered on $7 billion in aggregate acquisitions, including over $3 billion of real estate related debt investments. In addition, Fairfax currently has a 9% equity ownership interest in Kennedy Wilson.