LSM Management Successfully Acts as Placement Agent for Final Closing of Axes Credit Partners' EUR 140 Million Credit Fund Focused on European Hospitality Sector

BY Christiane Abrams | 20 Feb 2025

 

LSM Management is pleased to announce the successful final closing of Axes Credit Partners’ latest credit fund, having raised EUR 140 million for exclusive investment in the hospitality sector of commercial real estate across Europe. The fund, which was fully subscribed, marks a significant milestone in the firm’s growing presence as a trusted placement agent for alternative investment strategies.

 

The Axes Credit Partners Hospitality Credit Fund is targeting an IRR (Internal Rate of Return) of 14-16% and an equity multiple of 2.5x-3x over the fund's projected investment horizon of 4 to 5 years. The fund is designed to deliver attractive risk-adjusted returns, leveraging the potential for value creation within the recovering hospitality sector, particularly in high-demand European markets.

 

Axes Credit Partners, a leading investment firm specializing in credit and real estate investments, will utilize the newly raised capital to acquire and manage real estate-backed credit assets in the hospitality sector. With a focus on premium hotels, resorts, and other hospitality assets across key European markets, the fund aims to capitalize on opportunities arising from the post-pandemic recovery and the evolving dynamics of the European hospitality industry.

 

"We are thrilled to have supported Axes Credit Partners in raising EUR 140 million for this highly targeted fund," said LSM Management. "The hospitality sector in Europe is showing strong signs of recovery, and the fund’s strategy is well-positioned to tap into the growing demand for high-quality hospitality assets in top-tier tourist and business locations. The fund’s target returns of 14-16% IRR reflect the exciting potential for both capital appreciation and income generation within this asset class."

 

Investment Strategy and Focus

The Axes Credit Partners Hospitality Credit Fund will focus on providing credit solutions to operators and owners of high-quality hotels and resorts across Europe’s most attractive markets.

The fund targets properties with significant upside potential, including those undergoing repositioning, renovation, or requiring restructuring to optimize operational performance. Key investment locations include the UK, Germany, France, Spain, Italy, and Greece, where strong fundamentals and improving market conditions create a favorable investment environment.

 

"We are excited to deploy this capital into key hospitality assets across Europe and drive value through active management and strategic interventions," said [Name], Managing Partner at Axes Credit Partners. "The strong demand for hospitality properties and the sector’s ongoing recovery make this an opportune time to invest. We look forward to delivering strong returns for our investors

 

About Axe Investments:

 

Axes Credit Partners is an established alternative investment firm that specializes in credit and real estate investments. The firm focuses on providing capital solutions to real estate owners, operators, and developers with an emphasis on the hospitality sector. Axes Credit Partners leverages its deep industry expertise and strong relationships to create value through structured credit investments and active asset management.

 

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.