UBP Private Debt Fund III has raised over EUR 110 million. It has devised a strategy to earn attractive risk-adjusted returns by investing in privately sourced debt obligations, expanding UBP’s existing diversified range of private debt solutions.
The UBP Private Debt Fund III has a lifespan of 4.5 years and will return capital after a 2-year investment period. The target size is up to EUR 300 million, typically invested in debt transactions of EUR 5–30 million with one-to-three-year maturity.
The portfolio will be skewed toward real estate-related opportunities, with a focus on financing sectors that generate long-term income streams. The fund’s investors include HNWIs, family offices, asset managers and institutional investors.
The strategy further complements the investments offered by UBP’s Private Markets Group (PMG). In 2019, the bank announced a partnership with independent family group Rothschild & Co, which saw the launch of an equity fund for both private and institutional clients.
Colin Greene, Head of UBP’s Private Debt team, said in a statement, “The Covid-19 pandemic has had a dramatic global impact, causing substantial segmental dispersion and accelerating underlying trends. The policy response has driven yields down in public debt markets, encouraging investors to seek private debt strategies. As private debt is not a homogeneous asset class, we will focus on those sectors we see as more resilient to the long-term fallout of Covid-19, including social and affordable housing, the private rental sector and B2B companies.”