Amid promising opportunities within the Nordic real estate market, Norwegian investment house Norselab is launching a high-yield fund structured as an alternative investment fund to invest in Nordic real estate. Norselab Real Estate Credit Opportunities, set to debut on November 20, marks the second credit fund under the Norselab Group umbrella.
“Nordic real estate is under tough pressure. With high inflation, rising interest rates, and poor macro factors, now is excellent timing for high-yield credit,” says Tom Hestnes, Managing Director of Norselab’s credit arm. Hestnes will co-manage the fund alongside senior portfolio manager Ole Einar Stokstad, formerly Head of Credit Research at DNB Markets for over 15 years.
“Nordic real estate is under tough pressure. With high inflation, rising interest rates, and poor macro factors, now is excellent timing for high-yield credit.”
The upcoming launch comes a year after Norselab launched its first credit-focused fund dedicated to impact investing, Norselab Meaninful Impact High Yield. For the new real estate credit fund, Hestnes and his team are combining their credit expertise with the sector-specific know-how of real estate entities K2A and Compactor. “We will pool knowledge, networks, analysis, and execution to enhance our decision-making,” says Hestnes.
Structured as an alternative investment fund, Norselab Real Estate Credit Opportunities will maintain high concentration and will leverage the team’s extensive experience with distressed situations. Known for his activist mindset, Hestnes anticipates leading several restructurings on behalf of bondholders while also integrating sustainability considerations and opportunities into the investment strategy. “Our goal is to have distressed companies make the right choices, and secure optimal solutions for the bondholders,” states Hestnes.
“With this new fund, we will make our mark in the Nordic real estate corporate bonds universe over the next 3-5 years,” envisions Hestnes. The market has already shown interest in the product, with the fund launching with nearly NOK 550 million under management and an asset management cap set at NOK 1.5 billion.
