North Dakota State Investment Board had closed on a $75m (€64.5m) commitment into S3 Capital’s S3 LB RE Credit Fund III, according to board documents.
This commitment was funded with $50m from the North Dakota Legacy Fund and $25m from the State Investment Board Pension Fund, which are both managed by North Dakota Investment Board.
The commitment was part of the final close on Credit Fund III that took place earlier this month.
S3 Capital raised $850m of discretionary fund commitments and an additional $465m of co-investment capital. The initial target for the capital raise was $650m. These investments are expected to have loan origination capacity of approximately $4.3bn.
The commingled fund focuses on providing first lien construction financing on assets located throughout the US – primarily multifamily residential developments in supply-constrained markets.
The capital was raised against the backdrop of a persistent US housing shortage and continued retrenchment by regional banks from construction lending, creating an opportunity for specialised private lenders to find attractive investment opportunities.
Some of the capital has already been put to work by S3 Capital. The fund has originated over $2.3bn of whole loans and has called nearly half of the investor commitments, according to the manager.
Some of the markets where S3 Capital has recently been active in include Florida, New Jersey, New York, and South Carolina.
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