North River Investment Management LLC, a manager of private equity funds, has launched its first commercial real estate private equity fund, North River Opportunity Partners I LP, with $100 million of committed capital.
The fund will pursue investment strategies designed to capitalize on opportunities created by turmoil in the global credit markets, the company says. Initially, the fund will buy discounted pools of commercial mortgage debt and originate first-mortgage and mezzanine loans on high-quality commercial real estate properties.
‘Our team sees enormous potential to create long-term value from the massive dislocation in the credit markets,’ states Jonathan Kaye, co-founder of North River. ‘Current economic pressures have led to wide-scale devaluations of assets such as commercial mortgage-backed securities. At the same time, due to capital constraints, many traditional lenders have retreated from commercial mortgage financing, even for highly creditworthy properties.’
‘To seize these opportunities, we have devised a strategy that is flexible enough to allow us to either acquire or originate quality commercial real estate-oriented financial assets, while actively enhancing the value of those assets,’ continues Kaye. ‘We view this as the first step in creating a long-term platform for investment in the commercial real estate capital markets.’
Source: North River Investment Management LLC