London — Michel Andre Heller is looking to lend when credit is tight. The London-based real estate adviser to a billionaire family from the Middle East is lining up deals of as much as £5m for UK residential developments and more than double that amount alongside other investors for bigger properties, such as hotels or offices.
“We have seen a lot of clients saying, ‘Where should I invest if I want to be in the debt market?’” said Luigi Pigorini, region head for Europe, the Middle East and Africa at Citigroup’s private bank. That may deter some investors, but few have longer horizons than family offices, which aim to grow fortunes across generations and have fewer constraints than institutional firms. The number of family offices active in private debt has more than doubled since 2015, according to research firm Preqin.
Those lending privately often focus on real estate, with property developers turning to family offices for extra flexibility and faster access to cash than with most banks. In return, family offices typically get the security of an asset-backed loan that provides consistent cash flow from interest payments.
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