This is from the TCI website:
TCI's real estate lending business was established in 2014. The TCI Real Estate Partners Lending Funds invest alongside The Children's Investment Fund Foundation (UK) (CIFF). These funds focus on first mortgage and senior secured lending on high quality assets in prime locations with a concentration on major cities in North America and Europe.
Can someone explain the strategy of real estate hedge funds, like TCI, how they make money and what their time horizons are? For example, do they simply buy real estate ABS products from investment banks & hold them to maturity? Do they trade them? Or do they make bespoke loans to real estate PE firms & developers?
Even in the latter case above, that means they won't make much more than 9 or 10% interest on these loans. Is that how they make money? Or does these hedge funds somehow leverage their transactions?
I'd appreciate comments from anyone who works in the industry or links to similar threads.