UNION CREDIT LAUNCHES PARTNERSHIP WITH NORWEGIAN INSURANCE COMPANY
Investment Grade Alpha Strategy ("UNION Alpha IG"). The fund will be a significant addition to UNION's private debt offering, supporting a growing need for long-term private capital in the Nordics. The fund will be a low-risk investment grade product, offering investors access to private loans pledged towards attractive credits within the Nordic real estate sector.
Protector, a renowned institutional fixed income investor, has confirmed its status as anchor investor, committing NOK 1 billion to the fund.
"On behalf of Protector, we are pleased to continue our collaboration with UNION as an anchor investor in the planned UNION Alpha IG. This initiative reflects our ongoing focus on securing attractive risk-adjusted returns while strengthening our position in the real estate market," says Andreas Høye at Protector.
The primary driver behind the establishment of the new fund is underlying regulatory changes and increasing demand for alternative financing sources in the real estate sector. The fund builds on UNION's existing credit platform but will operate as an independent product.
"The launch of this fund is an important step for us, and it is inspiring that a recognized player like Protector is joining at the outset. This enables us to offer a sought-after form of financing and will help cover a broader spectrum of the debt capital market. The fund is an exciting addition with a different mandate and risk profile than our other fixed income funds," says Christoffer Hæhre, Managing Director at UNION Credit.
UNION is the first, and thus far the only, Norwegian fund operator with permission to establish funds offering private direct loans. The new fund aims to provide access to private market investments through an attractive framework targeting excess returns while facilitating quarterly redemptions. The new fund will strengthen UNION's position as a stable long-term provider of credit solutions, and the platform is expected to create synergies on many levels. The combination of funds targeting both Investment Grade and High Yield risk puts UNION in a unique position to offer comprehensive financial solutions, flexibility, and optionallity to its clients.
"We continue to develop UNION's position as a leading real estate player and asset manager in Norway. The establishment of UNION's new credit fund is based on feedback from our loan clients and investors and will meet their needs. Innovative solutions and frameworks make the value proposition highly compelling," says Endre Folge, CEO of UNION Group.
The specialized fund will be "open-ended" and subject to SFDR Article 8. The fund will primarily target investment grade senior secured loans to commercial real estate firms within office, retail, residential, and logistics. Geographic focus will be on the major Nordic cities. The fund, currently under establishment, will be marketed to professional investors and is expected to launch in Q2 2025.
For further information, please contact:
Christoffer Hæhre, Managing Director, UNION Credit
Email: haehre@union.no
Phone: +47 95931585
About UNION Group:
Since inception in 1984, we have established ourselves as one of Norway's leading companies in commercial real estate. Over time, we have evolved from being solely a commercial brokerage to becoming a full-service provider in capital management, commercial brokerage, and analysis. UNION is owned and operated by active partners and currently consists of approximately 55 employees
