Avanath Capital Management said today that its third US affordable housing funds have raised $388m (€322.9m) at final close.
The funds are Avanath Affordable Housing III and Avanath III NY Co-Investment funds.
“Combined, the funds are one of the largest affordable housing funds in the country, enabling us to further our investment strategy of acquiring and preserving affordable housing assets in supply-constrained markets with high barriers to entry that are poised for strong job, income and economic growth,” Avanath’s president and CIO John R. Williams said.
With this closing, Avanath has almost doubled its equity commitments from its Fund II, which raised $200m in July 2015.
“The results we have achieved in Fund I and II have allowed us to elevate this third round of fund raising to new heights, and to garner tremendous institutional interest nationally and internationally,” Williams said.
Avanath’s funds are comprised of a total of 19 investors, including three pension funds, three foundations, four U.S. companies, four U.S. banks, four U.S. family offices and one European family office.
“We are fortunate to have a number of repeat investors who understand our platform and have seen the benefits of our strategy first-hand,” Daryl J. Carter, Avanath’s founder, chairman and CEO.
“Further, Fund III is our first to include European capital - a trend that we anticipate will continue as foreign capital continues to flow to U.S. markets.”
To date, Avanath Capital Management has acquired nine assets totalling $123m under the funds, and has an additional four assets under contract, with closings scheduled over the next several months.
“We have more than 50% of the total Fund III capital remaining to invest in additional affordable and workforce investments,” Williams said.
“We’ve already seen an increase in value by more than 11% in our early assets acquired in Fund III during our first year of ownership, and anticipate similar results with additional assets acquired in the fund.”
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