© PEI Media
Friday, November 24, 2023
By Staff Writer
AXE Investments announced the closing of its third Axios Credit Partners. Over the last few years, private equity investments in income yielding commercial, Industrial, residential and data centres have increased significantly. The increase is primarily led by changing institutional investor allocations across the world. LSM Management acted as the strategic consulting firm advising on various functions including leading tothe second close.
Mr. Ali Maradi Hussiani, Head of Sales - Middle East at LSM Management said, "Macroeconomic factors have considerably impacted the private funds market in the first half of 2023, across. In a weaker market there is often a flight to quality, and fundraising has been no exception. Many limited partners have preferred to re-invest in new vintages of funds in which they have previously invested, following triedand-tested paths with a strong previous track record. Additionally, building a wider investment platform with key investors, for example through co-investment arrangements, continuation vehicles and separate managed accounts, as described below, often in each case with arrangements that are favorable to limited partners in respect of fees and carried interest, has allowed general partners to further entrench relationships with existing and previous investors"
On a comment request Mr. Tim Sethers, Executive Director at LSM Management opined ,"Axes Credit Partners completed the first close of more than EUR 250mn which will be invested in the established occuipers market of Europe. Domestic investors account for 45% of the real estate fund raised, while overseas investors account for the remaining 65%. Family Offices and Private Investment Firms from GCC represented the majority of overseas limited partners in Fund. Axes Investments is targeting a IRR of 12 – 17%. Sectors to watch include those that offer the promise of recession-proof stability. Institutional Investor’s prerences ae dominated by niche, operational asset classes that are acknowledged as being underpinned by global megatrends—decarbonisation and energy transition, information technology, demographics and urbanisation. Elsewhere, an AI shakeup is well on its way and construction costs continue to blight the real estate sector. There is general agreement that occupiers (and therefore real estate investors) are prioritising quality space that helps companies adapt to the latest working practices as well as long-term sustainability"
According to LSM Management, “While interest rates, inflation and European economic growth remain the chief worries for the industry over a five-year horizon, LSM expects more clarity on these matters will facilitate greater transaction activity in 2024. However, there is unlikely to be a single timeline for this across Europe’s diverse markets. LSM expects business confidence and profitability to increase, providing room for cautious optimism and opportunities for risk-adjusted returns for experienced players in the market.
About Axe Investments:
AXE Investments is a Belgian limited company with a nominal capital of € 7.5 million and a shareholders’ equity of € 14 million. AXE Investments is a joint venture between the holding companies Anacom (controlled by Christian Leysen) and AvH Growth Capital (Ackermans & van Haaren) and is part of the AXE Group.
About LSM Management:
LSM Management is a highly integrated creator, placer and man- ager of alternative capital company with an international pres- ence. Our focus on Institutional Investors drives us to provide sophisticated quality services. Our clients engage us for complex, demanding and time- intensive projects. LSM Management designs and implements holistic wealth management solutions in today’s complex regulatory environment. LSM Management focuses on a selected few geographic markets, which has allowed us to build up the expertise and resources required to provide comprehensive services to our clients. We bridge the Middle East, Far East and select European Institutional Investor with Fund and Investment Opportunities in the West.