Northwind Group has successfully completed fundraising for its third debt fund dedicated to real estate. Northwind Debt Fund III (NDF III) closed with 1 billion dollars in committed capital, after the private lender initially set a target volume of 500 million dollars in January 2025. Driven by strong demand, the fund's size was doubled over the course of the investment phase.
The vehicle has already originated 1.5 billion dollars in loans. Financings focus on multi-family residential, condominiums, and office-to-residential conversions in major supply-constrained gateway markets across the United States. Ran Eliasaf, founder and managing partner of Northwind Group, stressed that this is the firm's largest fund to date and that this milestone further solidifies the company's position as a fund manager.
Growing capital base and institutional investors
According to Eliasaf, the successful closing builds on the firm's first two real estate debt funds, which closed at 220 million and 326 million dollars respectively. Numerous existing investors took part in the new vehicle once again. The investor base for NDF III comprises pension funds, insurance companies, banks, family offices, and high-net-worth individuals.
NDF III concentrates primarily on senior secured loans in key US markets such as New York, South Florida, Los Angeles, and Chicago. Almost 60 per cent of the capital has already been deployed, and around 90 per cent is expected to be committed by the end of 2026. Typical loan sizes range between 100 million and 200 million dollars.
- —401 million dollars as a senior completion and inventory loan for the Ritz-Carlton Residences project by Catalfumo Companies in Palm Beach Gardens, Florida
- —208 million dollars as a construction loan for the conversion of an office building into residential units at 141 Willoughby Street in Downtown Brooklyn
- —Further senior loan originations across the target markets of Los Angeles and Chicago
Focus on supply-constrained residential markets
Around 93 per cent of the fund's volume is allocated to residential real estate. A considerable portion of the capital targets multi-family and condominium schemes in New York City, a location that Eliasaf views favourably despite persistently elevated interest rates. From a lender's perspective, the acute shortage of supply provides stability to the market.
In Eliasaf's view, however, the market environment calls for a conservative approach in light of rising interest rates and uncertain valuations. Alongside meticulous asset selection, the creditworthiness and reliability of the participating developers are currently paramount.
