Signal Capital raises new EUR900m credit and real estate fund
Signal Capital Partners Limited (Signal), a London-based private asset management firm, has held a final closing for a new EUR900 million fund targeting European credit and real estate special situations investments.
Signal completed the fundraising between August 2019 and February 2021, securing a substantial proportion of funds amid the Covid-19 pandemic. The fund targets transactions of EUR25 million–EUR75 million across Europe and has made seven investments to date, totalling EUR330 million.
The successful fund raise caps a period of significant growth for Signal since it was launched in 2015 by Elad Shraga, Amit Jain and Gad Caspy, a team of experienced special situations investors who previously led similar businesses at Deutsche Bank. Signal now has total assets under management (AUM) of EUR1.7 billion and employs 32 staff, including 26 investment professionals.
Signal’s latest fund attracted participation from investors including pension funds, insurance companies, financial institutions and single-family offices across EMEA and North America. Investors responded to the opportunities available from its alternative lending strategy, which are expected to increase post-Covid-19 and banks reappraise their loan books and withdraw support from areas of the market.
The fund leverages Signal’s network of executive relationships and proprietary technology to find credit investments in complex, private bilateral situations and highly illiquid public market instruments. It also targets CRE investments including private lending, acquisition of debt portfolios and special situation equity.
Elad Shraga, Chief Investment Officer, Signal Capital, says: “We are proud to have raised one of the largest dedicated special situations funds in Europe at a time when capital raising conditions are extremely tough. Since Signal was founded in 2015 the business has gone from strength to strength and our latest fund is testament to the quality of our investment team and ability to deliver the compelling, risk-adjusted returns which investors have struggled to obtain from traditional asset classes.
“As the world returns to normal post-Covid-19 traditional lenders such as banks will be forced to review their loans books and release stock of non-performing loans. This will create attractive opportunities for us to step in and provide the support companies and real estate borrowers need to weather the after-effects of the pandemic and emerge in stronger shape.”