LINUS Digital Finance launches alternative investment fund
LINUS Digital Finance, a Berlin-based financial technology company, has launched the “LINUS Managed Portfolio”, an alternative investment fund (AIF) allowing investors to participate digitally in a curated portfolio of ten professional real estate loans and profit from LINUS’s proprietary network of renowned real estate developers and its unique co-investment model.
Since its foundation LINUS has – together with co-investors – successfully financed more than 40 real estate projects with a volume of more than half a billion euros. Professional and semi-professional investors can participate through the digital investment platform of the Berlin-based fintech. Through the new fund investors will receive a preferential allocation in all real estate loans offered on the platform. With an investment term through 2024 target returns (IRR) are 6.5 to 8 per cent. The fund will enable diversification in different dimensions, not only at project level, but also at a regional level across various German metropolitan areas, as well as in terms of usage (residential, office, mixed-use) and credit tranches (junior and senior).
“Real estate private debt offers very attractive investment opportunities, in particular in the current low interest rate environment, yet it requires good market access and in-depth expertise in the selection of projects. With our ‘Managed Portfolio’ we are eliminating traditional access barriers so as to allow a wider group of investors access to this exciting asset class,” explains David Neuhoff, the founder and CEO of LINUS Digital Finance AG.
The new fund has profited since the first day of the investment phase on 1 April 2021 from a seed portfolio comprising four individual loans, and thus guarantees a direct capital call and the optimisation of the investor return. These are two senior loans with residual terms of five to 36 months for two existing properties in Hamburg and Frankfurt, as well as two new buildings in Berlin. In the course of 2021 six additional investments which meet predefined investment criteria will be added to the Managed Portfolio.