Banor: two new funds worth one billion each over two years and its debut in senior debt

Banor is preparing to launch two new funds between now and 2027, with an ambitious fundraising target of at least one billion euros. This was explained by Lorenzo Guidi, portfolio manager at Banor Capital, who emphasised that the new Banor senior debt also marks the debut of a new strategy entirely dedicated to senior debt instruments.

“Normally,” explains Guidi, “we did not invest in senior debt. With our first two funds, however, through a number of transactions in which we were involved, we identified market situations where, despite the lower risk, banks and traditional lenders were still unwilling to step in. Hence the decision to raise capital dedicated to financing property projects and assets through Senior Debt.”

“The fund,” Guidi went on to explain, “is aimed primarily at institutional investors and will be operational from the second half of 2026, with a target of around 400–500 million euros. In fact, preliminary work has been underway for a couple of quarters to diversify the institutional investor base into new markets and the UK, where the fund has already secured the commitment of an anchor investor for 200 million euros. At present, the pipeline includes a number of very interesting transactions, mostly in the UK (totalling 75 million), Italia (two transactions have been identified so far: one involving a residential property in Milan worth around 10 million and the other a country estate in Tuscany converted into a hotel worth around 15 million). Finally, there is Spain, where we are working on the financing of a property in Madrid, a loan of around 25 million’.

“Milan,” admits Guidi, “has proved to be a very difficult market over the past 18 months. The slowdowns caused by the urban planning inquiry have had an impact on prices and rents, which have continued to rise, partly due to a shortage of properties. We are particularly interested in the upper-middle segment. On the hotel front, however, particularly in Italia, there remains a mismatch between sellers’ asking prices (typically families who have invested little in their businesses over a long period) and buyers’ offers, as buyers often have to completely refurbish the properties. Finally, student accommodation remains a highly sought-after asset due to a structural shortage that particularly affects Italia, but also Spain.”

In line with the two previous funds (Banor Special Situations I and II, with assets of €115 million and €275 million respectively, focused on preferred equity, senior loans and mezzanine financing) “Banor,” concluded Guidi, “is also planning to launch a third fund, Banor Special Situations III, which will be launched in early 2027, with the same characteristics as the previous funds but with a fundraising target of around €400–500 million.”