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TCI builds $636m portfolio of loans tied to Italy’s luxury hotels
TCI’s biggest holding is $392m of debt secured by Venice’s Hotel Danieli, and the loans are arranged by a private credit firm led by Martin Frass-Ehrfeld.
Sir Christopher Hohn’s TCI has built a $636m portfolio of loans backed largely by Italy’s most exclusive hotels, positioning the hedge fund within a luxury hospitality market that has been supported by strong demand and limited supply, according to reporting by Hedgeweek citing a Financial Times report.
The investment represents a smaller, lesser known slice of TCI’s broader $77bn master fund, and it highlights the fund’s growing exposure to real estate debt. TCI’s largest position is a $392m interest in debt secured against the Hotel Danieli in Venice, a historic late 15th century property that is undergoing a major refurbishment after transitioning from Marriott to Four Seasons, with renovation expected to complete next year.
TCI also holds interests in a $132m loan to Hotel Caesar Augustus in Capri, $74m of debt linked to the Six Senses property on Lake Como, and $38m lent against the Mandarin Oriental in Milan. Outside Italy, it has a further $62m exposure to borrowing by the Six Senses hotel in Ibiza, with the underlying properties owned by Italian real estate group Gruppo Statuto.
Rather than originating the loans itself, TCI takes positions in loan deals arranged by a private credit firm led by investor Martin Frass-Ehrfeld. Hedgeweek also notes Cushman and Wakefield data showing revenue per available room in Italy rose 53% between 2019 and the end of 2025, with the luxury segment driving much of the increase despite higher room rates.