NEW YORK–(BUSINESS WIRING) – Asia Capital Real Estate (ACRE), a global private equity investment firm that manages the capital of institutional and family office investors, has announced the closure of its fourth fund, ACRE Credit I.
ACRE launched a fundraising process in the first quarter of 2020 and ultimately raised over $ 325 million in commitments, well above the $ 300 million target. The fund has been well received by institutional investors looking for stability and growth potential in an uncertain economic environment.
ACRE Credit I provides the first mortgage bridge loans, mezzanine loans and preferred capital to best-in-class multi-family owner-operators secured with institutional grade real estate in the United States. In a low-yield environment, the Fund is designed to generate double-digit interest rates and targeted IRRs for teens. Byrd has acted as financial advisor on many of the Fund’s largest commitments, including those of institutional investment managers Almanac Realty Investors and OPTrust. Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, invested $ 320 million at the start of the year in various funds managed by ACRE. A large percentage of the Almanac’s liabilities have been allocated to ACRE Credit I, a testament to ACRE’s lending platform and its proven track record.
“The success of our first direct lending fund is the result of ACRE’s widely recognized ability to understand the market and identify lending opportunities backed by strong, income-generating multi-family assets,” said ACRE Founding Partner Les Menkes… “Through our demonstrated track record of success, this instrument has been able to secure significant commitments from many well-known institutional real estate investors, enabling us to act conservatively and offer a high degree of principal protection while maintaining the potential for significant returns. ”
To date, ACRE Credit I has raised over $ 325 million in capital since its launch and has since closed, and is committed to providing over $ 700 million in total loans across 17 transactions. These loans are designed to support the acquisition, lease, renovation and recapitalization of multi-family assets in emerging secondary markets such as Miami, Florida; Durham, North Carolina; Cincinnati, Ohio; Orlando, Florida; Charleston, South Carolina; and Dallas, Texas.
The fund has attracted investors looking for a way to store their capital and provide predictable asset-backed returns while avoiding contact with areas of the real estate market that have been negatively impacted by the COVID-19 pandemic, such as retail and hospitality.
As a successful, vertically integrated multi-family owner operator, ACRE Credit I has the distinct advantage that credit fund managers can use the broader ACRE platform to improve both the underwriting of investment decisions and the management of the property it lends to. A natural addition to the strategy, ACRE invests capital with its investment partners and regular sponsor borrowers through its private equity vertical.
“The uncertainty of the economic climate over the past 16 months has had a profound effect on commercial real estate, forcing many investors to seek a more reliable risk and return profile for their liabilities,” he said. Daniel Jacobs, ACRE Partner and Head of Orienteering… “Institutional multi-family assets offer a more stable long-term perspective than many other areas of the market. ACRE’s expertise in this area, access to fresh liquidity and creative structuring offer a natural edge in the sector and we are delighted that investors are taking notice. ”
Through a range of equity and debt funds, ACRE manages over $ 1.8 billion in private equity investments and loans. The firm specializes in multi-family value-added projects and invests in labor and affordable housing in strategically growing markets.
About Asia Capital Real Estate
Founded in 2011, Asia Capital Real Estate (ACRE) is a global private real estate investment firm that manages institutional and family office investors through a range of private equity and leveraged funds and currently has over US $ 1.8 billion under management. Since its inception, ACRE has been acquiring, developing and lending, covering 22,000 housing units in 78 properties in 33 cities. ACRE’s strategies focus on private equity and lending and focus on the fast-growing US markets, with additional properties currently under construction in Southeast Asia and the United Kingdom. ACRE operates a global portfolio of multi-family homes with offices in Atlanta, New York and Singapore.