The context
Real estate needs debt capital for acquisitions, developments and refinancing. Banks are more cautious in providing it than they used to be, partly because capital requirements have risen.
Institutional investors are increasingly closing this gap themselves. Pension schemes and other investors permitted to do so under supervisory law grant loans directly on their own balance sheet. They seek regular, secured interest income and need partners who know the markets, assess risks carefully and manage loans over their entire term.
Financing for regulated funds
Regulated real estate funds pool many properties, locations and tenants. For lenders, this provides particular security: the financing rests on a diversified portfolio rather than a single building, and the fund’s supervision, depositary, valuation and risk management ensure transparency.
Fund financing requires an understanding of the fund world. We know the requirements of asset management companies (KVGs) and structure financing that fits the fund and its rules.
Broad base
Many properties and tenants spread the risk. Portfolio financings range up to several hundred million euros.
Clear controls
Supervision, a depositary, regular valuation and risk management provide a reliable framework for lenders.
Within the fund’s framework
We take account of the fund’s terms and conditions, statutory borrowing limits and the requirements of its investors.
What we finance
We arrange financing for standing assets and developments across Europe, for single properties as well as for portfolios and funds. Our borrowers are regulated funds, property owners, developers and investors looking for a reliable financing partner.
Senior Loans
First-ranking secured loans for standing assets and projects. The financing ranks first in the land register and covers the largest part of the capital requirement. Senior loans are currently our main focus.
Whole Loans
Senior and subordinated financing from a single source. Borrowers negotiate with one partner, sign one set of documentation and receive financing that covers a higher loan-to-value (LTV).
Mezzanine
Subordinated capital between senior financing and equity, for example for developments, repositionings or acquisitions where bank financing alone is not sufficient.
Office / Residential / Retail / Logistics / Hotel / Mixed use / Developments / Portfolios / Funds
In addition to real estate, we arrange selected financings for infrastructure and renewable energy.
Every loan starts with the property
A loan is only as good as the property, the market and the partner behind it. That is why we assess every financing from the property outwards: location, tenants and cash flow, condition and development potential, and the borrower’s experience and creditworthiness. For funds, we also look at the portfolio, the fund’s terms and conditions and its structure. From this we develop a structure that fits the project and protects the interests of lenders and investors.
We analyse data from properties, markets and contracts using the technology of the Institutional Investment Group (2IG), so that risks become visible early.
Understand property and market
We analyse the property or portfolio, location, lease situation and business plan, and assess the borrower with the same care.
Set terms and collateral
We align loan-to-value (LTV), term, amortisation, covenants and collateral with the project and the lender’s risk profile.
Manage over the term
After drawdown, we monitor properties, key figures and covenants, manage changes and report to lenders and investors regularly and transparently.
Three steps to financing
Short lines of communication, dedicated contacts and clear feedback: you know early on whether, and on what terms, financing is an option.
Share the key data
You tell us the property, location, use, required amount and timeframe. We come back to you promptly with an initial assessment.
Receive an offer
After reviewing the documents, we send you an indicative offer setting out the key terms and covenants.
Sign and draw down
Following the lender’s credit decision, we document the financing together with you and support the drawdown.
Selected financings
Three examples of our work for regulated funds, shown without names out of consideration for borrowers and lenders.
Portfolio financing
Long-term financing secured by land charges was provided for the retail portfolio of a regulated fund in Germany. The long-term loan-to-value (LTV) is around 45 per cent.
Tranched fund financing
For a diversified real estate fund with more than €500m in real estate assets, a logistics financing was split into one senior and two junior tranches, with different terms and loan-to-value ratios and with recourse to the fund’s assets. Secured by a first-ranking land charge and assigned contractual claims.
Fund-level facility
A fund-level facility was agreed for a European residential fund domiciled in Luxembourg, which the fund can draw and repay flexibly. It complements the fund’s property-level financings.
Advisory and loan management for lenders and investors
Pension schemes, insurers and other institutional investors are permitted under supervisory law to hold loans on their own balance sheet. For them, we act as both advisor and loan manager: we source and assess suitable financings, arrange them, structure and document the loans and manage them over their entire term. This is a speciality of Fund Finance Management.
For investors who invest through debt funds and mandates, we act as advisor to the asset management company (KVG) that manages the fund.
The decision on each financing is taken by the lender or the asset management company (KVG). Real estate loans also involve risks. We make them transparent so that everyone involved knows what they are committing to.
Advised and managed
We bring suitable financings, prepare the credit decision and take over loan management until repayment. The decision remains with the lender.
Acting as advisor
Investors participate through a fund or a mandate. The asset management company (KVG) manages and decides; we advise it.
Transparent reporting
We continuously monitor key figures, covenants and collateral and report in the way supervisors, committees and auditors expect.
Who we work for
Insurers / Pensionskassen (company pension funds) / Pension schemes / Supplementary public-sector pension funds / Banks / Savings banks / Debt funds / Foundations / Family offices / Management companies (KVGs)
Specialised, with a strong platform
Fund Finance Management specialises in financing for real estate and real estate funds, complemented by selected infrastructure and renewable energy projects, and is based in Frankfurt am Main. Our team combines experience from banking, investment management and the real estate industry.
As a company of the Institutional Investment Group (2IG), we use shared systems, data and standards and work with specialists in law, tax, risk management and technology. This includes alignment with the Principles for Responsible Investment (PRI), to which 2IG is a signatory.
Rounded figures. Loan portfolio: loans managed by Fund Finance Management for lenders, funds and mandates. Figures for the Institutional Investment Group (2IG) as at 31 December 2025. Assets under management and administration: sum of assets under management (AuM) and assets under administration (AuA).
Let’s talk about your financing
Whether you have a specific financing request or an interest in real estate debt as a lender or investor: we listen and tell you openly what is possible.
Brüsseler Straße 1–3, 60327 Frankfurt am Main