Sycamore IV Mezzanine Finance Fund
Fund Closed for Investment
| Term of Fund | 3 Years |
| Date of Close | March 2011 |
| Structure | Alternative Close Ended Limited Liability Partnership |
| Fund Size | £2.8m |
| Target Return | 10% hurdle rate with targeted 15% IRR |
| Operator | Gallium Fund Solutions Limited |
As we move towards the bottom of the property market, experienced property developers will be looking to fund new residential development projects. However, they will not be able to raise the same bank funding as they did prior to the downturn. This means that they have to find more of their own money or use mezzanine finance to fill the gap. The Sycamore IV Mezzanine Finance Fund takes advantage of this by filling that gap.
This funding is expensive for the developer and takes around 50% of the profit from a project but without it they would not be able to carry out any developments.
This fund is fully invested and no longer open to investment. A new mezzanine finance fund is expected to launch soon.
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