Canuma Capital Eyes US Real Estate Debt Market

Canuma Capital, under the leadership of former Brookfield CIO Marcelo Vainstein, has successfully raised R$ 89.7 million for a new private credit fund focused on the U.S. real estate market. This initiative aims to tap into the substantial $5 trillion U.S. private real estate debt sector, with a particular emphasis on the $700 billion middle market segment. The fund is designed to cater to high-net-worth individuals seeking diversified exposure to U.S. real estate beyond traditional equity investments.

The newly launched Canuma Capital US Real Estate Private Credit FIM IE fund will concentrate on defensive residential assets, specifically targeting multifamily properties and senior living facilities. This strategic focus on resilient asset classes is intended to mitigate risk while capitalizing on the steady demand for housing. The fund's investment strategy prioritizes credit operations secured by real estate collateral, with maturities ranging from 12 to 36 months. A key objective is to maintain a loan-to-value (LTV) ratio around 65% across its portfolio, which is projected to encompass over 50 distinct credit operations.

A significant differentiator of this fund is its approach to returns. While investments are denominated in U.S. dollars, Canuma Capital aims to deliver fixed-rate returns in Brazilian Reais, effectively eliminating currency fluctuation risk for its investors. This is achieved through sophisticated hedging structures that leverage interest rate differentials between Brazil and the United States. This structure was a direct response to investor demand for predictable, fixed-income outcomes, particularly in anticipation of potential interest rate shifts.

This venture marks Canuma Capital's second international fund, following its US REITs fund which invests in U.S. real estate investment trusts. The firm's international strategy now represents approximately 17.5% of its R$ 950 million in assets under management. Marcelo Vainstein expressed ambitions to further expand the firm's U.S. presence, with plans for additional similar vehicles, including a single-investor fund slated for this year, contingent on demonstrating strong performance from the current offering.

The U.S. real estate credit market, valued at $5 trillion, presents a vast opportunity. By concentrating on the middle market, Canuma Capital seeks less competitive niches offering attractive risk-adjusted returns. Despite broader economic uncertainties, Vainstein remains optimistic about the U.S. economy's resilience, noting that macroeconomic indicators suggest continued stability, with residential real estate showing only a moderate slowdown attributable to interest rates, rather than significant distress.

The fund's origination process involves strategic partnerships with local U.S. lenders, a crucial element developed over two years of careful selection. The target annual return for investors is set between 15% and 17% in dollar terms, with the fixed-rate Real return structure designed to appeal to investors seeking stability and yield enhancement. The involvement of BTG Pactual as a minority shareholder underscores the strategic backing and market confidence in Canuma Capital's expansion into international credit markets.