Carmel Partners has closed its fourth institutional real estate investment fund, Carmel Partners Investment Fund IV, on its hard cap of $820m
Having exceeded its $700m target, Fund IV will continue to invest in multifamily properties in the country’s supply-constrained markets with high barriers to entry. Consistent with prior funds, Carmel also invests in new development and high-yielding multi-family debt opportunities.
Since initiating investment activity in March 2012, Fund IV has committed approximately $250m of equity, the firm said.
Including Fund IV, Carmel has raised approximately $2.5bn of institutional equity, from LPs including endowments, foundations, family offices, and pension funds among its investors.
“We continue to find compelling risk-adjusted opportunities, and we are uniquely well positioned to take advantage of them,” said Ron Zeff, the firm’s founder and CEO. “With 26 return investors and 17 new investors, we have a top tier investor base that has shown us a lot of support.”
In September 2007, Carmel closed its third institutional real estate investment fund, Carmel Partners Investment Fund III on $700m. Fund III concluded its investment activity in April 2012 with 36 transactions and recently reported a net IRR of 16.7 per cent to investors as of 30 June.
Carmel Partners Investment Fund II closed in April 2005 with $400m of equity. It recently reported a net IRR to investors of 7.8 per cent. The firm’s first fund closed in November 2003 with $215m of equity and reported a net IRR to investors of 19.7 per cent.
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