ÆRA Capital - Nordic real estate debt financing and advice for the next gen.

Could you start by sharing a bit about your background and what ÆRA Capital does?

Fabio: Certainly! My background is in Pan-European real estate investing, with over ten years spent in London focusing on various markets, including the Nordics. When I started thinking about moving to Oslo, I noticed a significant gap in the Nordic market for alternative real estate lending. Most firms were focused on individual countries, and there was no unified approach to present the Nordics as a region.

Our goal at ÆRA is to create a private debt platform that allows international institutional investors to access the Nordic markets more efficiently, leveraging our experience and networks. We aim to provide tailored financing solutions that meet the specific needs of borrowers while also appealing to international capital sources.


What makes ÆRA stand out in the market?

Terje: ÆRA stands out because we combine a Nordic approach with the process and expertise from global investors. By presenting the four countries as one cohesive market, we are looking to make it easier for international investors to understand and invest in the region. We believe that presenting the Nordics as a unified entity significantly enhances its attractiveness to foreign investors through greater scale and more risk diversification.

Many international investors may not realize that the Nordics collectively represent the fourth-largest economy in Europe, with the highest concentration of AAA-rated countries globally. However, the market landscape is quite fragmented, therefore being present locally within the region is crucial to the success of the business.

Additionally, we focus on educating both borrowers and capital providers about the opportunities in Nordic real estate, particularly in terms of transaction size. If you only target deals above €100 million, there is a much more limited opportunity set which does not address most of the market in the Nordics which are usually between €15m-€150m.

Therefore, we see our role as educating borrowers while also working with international capital providers to demonstrate that transactions sub €100m are worth their time. That is where we add value—by making the market more accessible.

Is there a lack of available capital in the Nordics, hence your international focus?

Fabio: That’s an important question. The real estate lending landscape has historically been dominated by the Nordic banks with over 80% of market share. On the other hand, investor groups such as family offices and pension funds have traditionally focused on equity investments. These entities are often seeking higher returns, especially in the current economic climate with rising interest rates.

Alternative real estate lending is still a fairly new concept, therefore there is a shortage of domestic capital for the time being. In contrast, there is a large pool of global investors looking to invest in alternative lending in particular in markets where a few criteria are met:

1. Mature real estate markets with good liquidity
2. Stable, lender-friendly legal frameworks
3. Low market penetration

The Nordics tick all of these criteria, and as a result we are seeing strong demand from outside of the region to invest in opportunities.

How has the reception been for ÆRA so far?

Terje: Overwhelmingly positive. We’ve leveraged our extensive network to engage with numerous borrowers and lenders, screening a wide variety of projects. We have reviewed more than 60 situations, representing almost €5 billion across the Nordics in potential deal flow.

Of course, ÆRA is still a young firm. Not every opportunity that comes our way is suitable, but that is natural when building a platform. We are focused on engaging in projects that will strengthen our franchise and reputation in the market.

Currently, we have a qualified pipeline of about €1 billion, and we have just announced our first transaction which is a SEK 1.7bn (c. €150m) Whole Loan secured against a portfolio of new production residential assets in Greater Stockholm.

What types of parties are typically involved in your deals?

Fabio: Typically, we work with local borrowers who are seeking more flexible capital solutions than banks or the bond market can provide. These can be asset owners, sponsors, or developers looking for bespoke financing. On the lender side, we engage with a mix of institutional investors, existing debt funds and family offices, seeking exposure to the Nordic markets. Our role is to originate transactions, negotiate terms and facilitate execution—ensuring that both borrowers and lenders find value in the partnership.


What advice would you offer to young professionals starting in this industry?

Fabio: When hiring, we place a strong emphasis on aptitude and attitude. The willingness to learn and to take ownership is essential. In some cases, we see young professionals expecting rapid advancement or a very comfortable role. But in reality, careers in finance require resilience, hunger, and a commitment to growth. At the end of the day, no one else will manage your career for you.

Terje: I agree. Patience and persistence are key. Many young professionals want to see rapid progress, but it is important to build experience and stay long enough in a role to develop depth. Networking is also vital; reaching out to industry professionals can open many doors. You may be surprised by how accessible people are if you approach them thoughtfully.

Are people generally more accessible than you would think?

Fabio: Absolutely. You’d be surprised at who will respond to a well-considered message. Building a network is about reaching out, sharing what you are working on, and finding areas of overlap. Not everyone will respond, but many people are open to dialogue, especially if it gives them a chance to share their expertise.


What are your goals for ÆRA Capital going forward?

Terje: Our ambition is to become the leading alternative real estate lender in the Nordics. We aim to establish ourselves as a trusted partner for both borrowers and investors, providing innovative financing solutions that meet evolving market needs. We have set a target to facilitate around €2 billion in loans over the next five years.