RE-focused investment firm Slate raises $600M for private-credit fund

Toronto-based platform plans to invest in debt and back its $2.3B acquisition of Annaly Capital’s CRE business

National /
Jul.July 26, 2021 12:00 PM
Slate founding partners Blair Welch and Brady Welch (Slate, iStock)

Slate founding partners Blair Welch and Brady Welch (Slate, iStock)

Slate Asset Management has raised over half a billion dollars for a new private-credit fund — capital which is already being put into action, the real estate-focused investment firm said Monday.

The Toronto-based firm uses private-equity funds and public investment trusts to invest in real estate. Backed by the Petershill unit of Goldman Sachs, Slate raised close to $600 million for its first private-credit fund, the Wall Street Journal reported.

It’s not clear specifically how Slate will invest the money, though it is reportedly planning on investing in debt, such as bridge and transitional loans. The capital will also be used to back Slate’s $2.33 billion acquisition of Annaly Capital Management’s commercial real estate business, a deal which was announced in March.

The money raised in the private-credit fund exceeded Slate’s target, according to the firm, which has around $8 billion in assets under management.

Slate was formerly an operating partner of Blackstone when it was formed by brothers Blair and Brady Welch over a decade ago. Goldman Sachs acquired a minority stake in 2019.

More than $400 billion in commercial and multifamily debt is set to mature this year, creating opportunities for investors to capitalize with private credit funds as owners of distressed properties face the possibility of default.

[WSJ] — Holden Walter-Warner





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