The new fund, which received formal regulatory sign off late last month, is a Luxembourg domiciled Sicav Sif and has been launched offshore in order to capture growing interest in the company from international investors.
Montello said it has received seed funding from three offshore institutional investors and, now the fund has formerly launched, is taking investments on an on-going basis.
The fund itself will have a relatively broad investment mandate, building upon Montello's existing track record as a leading short-term real estate lender in the UK market. In addition to bridging finance, the fund will be able to provide development finance and enter into joint ventures.
Assisting on the investment transactions will be CBRE, the world’s largest commercial real estate services and investment firm.
Montello, which originally announced its plans to launch the fund in August last year, said it has set an initial target to invest up to £250m.
Montello managing partner, Christian Faes, said: “The team that we have brought together for this Fund is unquestionably the best team of global fund and real estate professionals in the market.
“Being able to have CBRE involved is a real coup, and we look forward to working with them to build a very strong presence in this market.”
The fund is open-ended and trades monthly, and aims to provide investors with a net return of between 6%-10% per annum, payable quarterly.
