Ironstate recently provided a facility to assist a commercial real estate fund with its capital and liquidity management.

The investment aligns with our strategy of providing differentiated and flexible funding solutions to our clients, and offering wholesale investors differentiated exposures to Australian commercial real estate private credit.

Managing the liquidity positions of funds can be difficult as managers typically seek to mimimise cash balances within funds whilst retaining sufficient liquidity within their fund either for new investments or for existing investments that require additional capital.

Subject to fund terms, managers can utilise funding structures such as warehouse facilities, net asset value (NAV) facilities, and underwriting facilities to assist with capital management. Larger funds can often access these types of facilities from institutional investors, however, these capital solutions can be more difficult to access for funds below institutional scale. 

The Australian commercial real estate private credit and private equity market is fragmented and capital management solutions can be difficult to source for some of these managers. These types of facilities can smooth a fund’s cash profile, minimise cash drag, facilitate capital recycling or fund growth, and assist funds to meet their obligations to investors and borrowers.

Ironstate is available for confidential discussions with fund managers to discuss how we can assist with capital and liquidity management of either single asset or diversified Australian commercial real estate funds.