Aegon Asset Management announced the closing of a $100 million affordable housing debt fund.
This is the first fund of its kind in the marketplace, and was sponsored by Aegon USA Realty Advisors, LLC (“AURA”), a member company of Aegon Asset Management (“AAM”), the global group of asset managers affiliated with Netherlands-based Aegon N.V. In addition to sponsoring the fund, AURA will also provide ongoing fund oversight, loan servicing, and asset management services for the life of the fund.
"AURA is well positioned to sponsor this type of permanent mortgage fund due to our expertise in the areas of tax credit equity syndication, commercial mortgage lending, and loan servicing" notes Lynn Ambrosy, Vice President of Real Estate Distribution and Client Management for AURA. "With such diverse skillsets we have the distinct ability to create this platform and provide our investors an opportunity to participate in this socially responsible market sector. This effort solidifies AURA as a market innovator in social impact investing; achieving the triple bottom line of strong returns and reasonable risks while serving a mission to meet the affordable housing needs of Americans." AURA manages more than $3.9 billion of tax credit equity investments and more than $11 billion of commercial mortgage loans for its affiliate and non-affiliate clients as of September 30, 2017.
This debt fund is expected to be comprised of investments in 32 loans located in 13 states across the country. The fund is closed to new investors. A total of six investors took part in the closing, including an affiliate of the fund sponsor. AURA has closed affordable housing related funds with 38 institutional investors. Bank of America Merrill Lynch acted as placement agent for the fund.