Principal Closes Private Debt Fund With Nearly $600M in Commitments

Principal Real Estate Investors has closed its third high-yield private-equity fund with $578.6 million in total commitments. The firm raised capital globally, securing a total of 30 limited partner commitments from a broad spectrum of investment groups and global markets, including the US, Asia and the Middle East.

The fund will offer loans on private real estate transactions, focusing on mezzanine debt, b-notes and senior mortgages as well as construction permanent loans in major US markets. The fund has already committed 37% of its equity in 11 transactions representing a total value of $410 million. Public and corporate pension funds, insurance companies, sovereign wealth funds, endowments, and foundations all participated in the fundraise.