Bostadskreditfonden raises SEK 6 billion for first residential development fund – expected to finance 10,000 new homes

Swedish Bostadskreditfonden has secured SEK 6 billion in initial commitments with funds managed by affiliates of Apollo Global Management as anchor investor. By recycling capital as loans are repaid, the fund is expected to enable the development of approximately 10,000 new homes over the course of its term.

Bostadskreditfonden, part of Triolgruppen, is an alternative investment fund offering financing solutions to established residential developers in the Swedish market. The fund focuses on supporting projects where demand for housing is highest, with an emphasis on developments that contribute to sustainable urban growth. The fund is now scaling up to meet the market’s demand for financing solutions tailored to larger projects.

– The Swedish residential market has been characterized by a severe undersupply of quality homes for some time, driven partly by limited availability of suitable development financing options. BKF was created to attempt to close the funding gap, supporting developers in delivering much-needed homes with a differentiated financing solution underpinned by Boverket, thus aligning the interests of government, residents and the private sector. We’re appreciative of the support of Apollo Funds as our anchor investor – their backing reflects a shared conviction in the opportunity and a strong endorsement of our product and team, says Hjalmar Sigurdarson, Head of Capital at Bostadskreditfonden.

Over the course of its term, the fund is expected to support the financing of around 10,000 homes across different forms of tenure. The ambition is not only to enable more housing developments, but also to contribute to a more demand-driven and sustainable housing supply over time.

– BKF is well positioned to facilitate much-needed new home development in Sweden and we are pleased to serve as an anchor capital partner, says Richard Whitfield, Managing Director, Apollo.

Bostadskreditfonden is actively developing new financial models to strengthen the market. As the first non-bank institution with a framework agreement with the Swedish National Board of Housing, Building and Planning (Boverket), the fund helps unlock institutional capital for new residential construction, helping developers to run multiple projects in parallel.

Mannheimer Swartling acted as legal counsel, Svalner Atlas Advisors acted as tax and structuring advisor, and Selinus Partners acted as placement agent in connection with the fundraise.