Pearlmark is pleased to announce the second closing of its sixth high yield credit investment fund, Pearlmark Mezzanine Realty Partners VI, L.P..
Pearlmark Mezz VI totals $300 million+ in commitments, including discretionary managed accounts, gaining on the momentum of the initial closing of $185+ million in August of this year.
Loan sizes are to range from a “minimum” of $5 million to $50 million or greater in combination with co-investment capital on larger loan sizes.
Pearlmark Mezz VI expects a final close to take place in Q1 2025 and expects to surpass its $400 million target.
Pearlmark has originated reportedly more than $2.1 billion across 162 high-yield debt and preferred equity investments.
Pearlmark Mezz VI targets subordinated debt investments, fulfilling borrower demand for gap financing solutions “on recapitalizations, acquisitions, and development projects in the top 30 metropolitan areas nationwide with strong sponsorship.”
Pearlmark Mezz VI will invest in multifamily and other adjacent sectors, including the following: student housing, active senior, and build-for-rent communities, and in industrial/logistics sectors.
The Fund will reportedly consider investments in mixed-use, medical office, and grocery-anchored retail properties.
Pearlmark Mezz VI’s predecessor, Pearlmark Mezzanine Realty Partners V, L.P., is nearly “fully committed” through 25 investments in “high-yield” credit with one final investment pending.
With focus in the middle-market space, Pearlmark has seen demand and transaction flow for this product, and the Fund is “anticipated to close on three investments by year-end.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, commented that there continues to be strong appetite from institutional capital for “attractive risk-return in our middle-market mezzanine market, and significant demand from sponsor/borrowers for the structured gap finance products Pearlmark offers.”
Pearlmark is a Chicago-based investment firm that targets domestic core-plus to value-add real estate opportunities via “commingled funds, separate accounts, and joint venture structures.”
To date, the Pearlmark team has backed 15+ real estate equity and debt investment programs and completed 588 real estate equity and debt transactions on behalf of investors, “representing $5.9 billion in equity capital commitments, $14.4 billion in gross investment value, and 162 originated loans aggregating over $2.1 billion in commitments.”
Pearlmark offers investment opportunities nationwide across various property types (industrial and multifamily).
