Hedge fund veterans pull past $39m in first Arel Capital real estate fundraise


Real estate investment house Arel Capital has picked up more than $39m towards its maiden fundraise.

The firm, which was founded four years ago, targets US real estate with a particular emphasis on multi-family rental properties.

No target is given for Arel Partners Fund I in an SEC filing made by the firm, which also shows the fund has registered capital from 10 investors to date.

Firm founders Richard Leibovitch and Gabriel Bousbib were both formerly with publicly-traded hedge fund Gottex Fund Management, as CIO and CEO respectively.

The pair launched Arel after deciding that due to the secular decline in interest rates, the urbanisation of large metropolitan areas, and the growing demand by millennials for rental product, the asset class was likely to outperform both on a relative and absolute basis.

The firm’s first transaction was the purchase of a 70 townhouse complex in Houston for $8.8m in March of 2013.

Since then Arel has closed 30 transactions, representing about $1.4bn worth of real-estate in six US cities.

More than 150 limited partners, including high net worth individuals, family offices and institutional investors, have invested in Arel Capital transactions to date, according to the firm’s website.

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