New facility set to boost its commercial real estate lending
Non-bank lender Pallas Capital has secured a $450 million senior funding facility from Ares Management Corporation, enhancing its capacity for offering larger loans.
As part of the agreement, Ares will serve as a funding partner for the Pallas Funding Trust No. 2, which focuses on lending to the commercial real estate sector.
To complement the funding, Pallas chief investment officer Dan Gallen (pictured) has allotted an extra $50 million from the company’s other financial vehicles.
The new facility is expected to issue loans ranging from $2 million to $25 million, a significant increase from the $10 million cap previously imposed on Pallas’ institutionally funded lending vehicles.
“We are excited to expand this business with Ares as a funding partner,” Gallen said. “Taking this wider lending mandate to market allows us to target larger loan sizes and a wider range of loan solutions to better meet demand from our borrower and broker partners.”
The Sydney-based lender has been operating institutional facilities since 2021, during which it has financed $850 million across 170 loans. Overall, the firm has completed $3.8 billion in loans, with approximately $2.1 billion repaid, totalling 554 loans.
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