JPMorgan, Fortress are the latest firms to build up war chests

Each firm is seeking to raise $1B+ for new real estate funds

National /
May.May 14, 2020 09:00 AM
JPMorgan Chase's Jamie Dimon and Fortress Investment Group's Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan Chase’s Jamie Dimon and Fortress Investment Group’s Wes Edens (Dimon via Mark Wilson/Getty Images; Edens via Scott Olson/Getty Images)

JPMorgan Chase and Fortress Investment Group are among the latest firms to launch funds seeking to raise big money during the pandemic.

The asset-management arm of JPMorgan Chase is looking to raise between $2 billions and $3 billion from institutional investors to take advantage of “dislocations” in the real estate market, according to Bloomberg. The vehicle will invest in bonds and loans connected to commercial real estate, with targeted net returns of 10 to 15 percent.

As the public and private real estate credit markets fracture, other companies are also sensing opportunity.

Fortress Investment Group is also looking to raise some $1 billion for its second lending fund.

The vehicle, Fortress Lending Fund II LP, is reportedly aiming to originate and purchase senior secured loans over a variety of sectors, with targeted returns of 12 to 15 percent per year, before fees.

It was earlier reported that the SoftBank-backed firm is looking to raise $3 billion for a separate credit opportunities fund. [Bloomberg 1, 2] — Sylvia Varnham O’Regan


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