Global alternative investment firm Varde Partners has announced raising nearly $1.5 billion for Varde Asset Lending Fund II, its latest asset-based lending opportunities vehicle.
The firm, which is an active investor in the Asia-Pacific region, said the main fund and its related accounts and co-investments received support from a global base of institutional investors.
Varde Asset Lending Fund II forms part of Varde’s lending platforms that provide financing solutions for consumers, businesses, and lenders.
Through the lending platforms, the firm invests in lending strategies across industries, including special finance, commercial real estate (CRE), and technology.
“The surge in demand for non-bank financing — an acceleration of a more than decade-long trend — underscores the need for private credit and magnifies already significant lending opportunities,” said Brad Bauer, partner and co-chief investment officer at Varde.
Varde Partners was founded in 1993 in Minnesota by three investment professionals – George Hicks, Marcia Page, and Greg McMillan. It has invested $95 billion in corporate and traded credit, real estate and mortgages, private equity, and direct lending.
The firm currently manages $13 billion in assets with teams in North America, Europe, and the Asia Pacific focused on corporate & traded credit, real estate, and financial services & diversified private credit.
Aneek Mamik, partner and global head of financial services & diversified private credit, said the growing demand for asset-based lending solutions and strategies aligns with Varde’s global platform.
“Varde brings an experienced and well-connected team to the table as we structure customised solutions for strong borrowers in underserved parts of the market,” said Mamik stressed.
A regulatory filing in January showed that Varde has raised $105.5 million so far for its latest Asia credit vehicle and sidecar funds. It did not specify the target for the said vehicle.
In December 2018, the firm raised $400 million for the first Asia Credit Fund, exceeding its target of $250 million. It also raised nearly $2.5 billion for its 13th flagship vehicle, the Varde Fund III, in December 2019.
Over the past 14 years, the firm has invested across 15 countries in the Asia Pacific and has offices in Hong Kong, Mumbai, Singapore, Sydney, and Tokyo.
In India, the firm said last year that it was planning to invest as much as $1 billion to grow its portfolio in the country. It provided about $56.7 million in debt to Indian real estate developer Omaxe in April last year.