New Alternative Fund Enters Nordic Direct Lending Arena


Stockholm (HedgeNordic) – With banks increasingly facing lending constraints, the proliferation of direct lending funds is unavoidable. Apikal Fastighetspartner launched its first alternative direct lending fund in early May following several years of providing debt capital for real estate transactions in a non-fund format.

Apikal Fastighetspartner II was set up as an alternative investment fund to provide junior debt capital to companies engaged in real estate transactions. The participation loan debentures are listed on the Nordic Growth Market, allowing debenture holders or investors to redeem their investments without Apikal Fastighetspartner II having to liquidate existing positions – two- to five-year loans to borrowers in the Swedish real estate market seeking capital for refinancing, acquisition, rebuilding and other related needs.

Explaining the decision to provide debt capital in a fund format, Martin Fredriksson (pictured), the CEO of Apikal Fastighetspartner II, tells HedgeNordic that “the fund format makes the process of raising capital easier, but also allows for more flexibility when lending capital to borrowers.” For instance, “to change covenants in a non-fund format, one has run the process by investors, while the fund structure allows for more flexibility.”

During its first of the four planned issuances for 2019, Apikal Fastighetspartner II raised SEK 120 million – capital provided to three borrowers. Another summer issuance is expected to raise around SEK 50 million, which will be lent out to an additional two borrowers. “These issuances are mostly demand-driven from the borrower side,” explains Fredriksson.

Despite the uncertainty surrounding the Swedish real estate market, Apikal Fastighetspartner II focuses solely on this market because “real estate assets are more liquid and predictable tangible assets” according to Fredriksson. “The existing borrower base constitutes 70 percent commercial real estate and 30 percent residential real estate, and we tend to focus more on commercial real estate,” says Fredriksson.

The yields in this segment are between 7-8 percent, depending on the type of real estate, collateral involved, quality of the borrower and other factors. The fund, therefore, is expected to return between 6-6.5 percent per year net of fees. Whereas Apikal Fastighetspartner II is mostly targeted towards retail and tier-2 investors, Fredriksson and his team “plan to launch new funds targeted towards institutional investors by going into more senior lending.”


Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at

Most Popular Today

Most Popular This Week

- Advertisement - spot_img

Latest Articles

RAM Launches Long-Only Vehicle

Stockholm (HedgeNordic) – A new trend evident in the hedge fund industry is that of established hedge fund managers offering new “best ideas” or...

The Merge: Changing Airplane Engine Mid-Flight

Stockholm (HedgeNordic) – Last week, Ethereum, the world’s second-largest blockchain, completed “the merge,” a software update designed to significantly reduce the intensive energy consumption...

Kasper Ullegaard to Succeed Durhuus as Asgard’s CEO

Stockholm (HedgeNordic) - Birger Durhuus (pictured) will be resigning his position as CEO of Asgard Asset Management by the end of the year. Durhuus,...

Foresight, Preparation, and Conviction

Stockholm (HedgeNordic) – The market environment in 2022 was ripe for the agile, diversified and active investor, as market participants had to navigate and...

Three Economists’ Explanations why Inflation is so High

Copenhagen - (Jesper Rangvid): I compare three recent academic explanations why inflation is high: John Cochrane’s, Ricardo Reis’, and my own. The conclusion as...

From One-Man Band to Orchestra

Stockholm (HedgeNordic) – After several years of successfully managing his hedge fund and asset management firm all by himself, Aalborg-based stock picker Andreas Aaen...