Avanath Raises $760M for Fourth US Affordable Housing Fund
Avanath Capital Management has announced the final close of its fourth discretionary fund totaling $760 million in equity commitments, above the original target of $550 million.
The fund is an investment vehicle dedicated to affordable and workforce housing, with an emphasis on underserved markets. It will target assets in supply-constrained markets with high barriers to entry that are poised for a strong job, income, and economic growth.
“Our focus has always been on preserving affordability in underserved markets across the country,” said Avanath founder, chairman, and CEO Daryl Carter. “As our fourth fund, we plan to continue this mission by bringing institutional capital to these communities, many of which are communities of color. In fact, our entire Avanath team is extremely diverse, which we believe allows us to better serve residents and our investors.”
The fourth fund consists of a variety of institutional investors, including U.S. pension funds, foundations, corporations, banks, and family offices as well as U.K. foundations and family offices and European pension funds. According to Avanath president and CIO John R. Williams, more than 50% of the capital in the fund is from European and U.K. investors, and more than 40% of the fund was raised during the COVID-19 pandemic. Affiliates of the Accord Group, based in San Francisco and London, and Selinus Capital, based in Frankfurt, provided placement services for the European and U.K. investors.
“The need for quality affordable housing and the affordability crisis in the U.S. is not going away. It is actually being exacerbated in this current environment,” said Williams. “As institutional investors continue to recognize this ongoing demand and the stability of affordable housing even in times of uncertainty, we will continue to see strong capital flows to the sector.”
He added that foreign investors also continue to find affordable housing in the U.S. to be an attractive option because of the increasing demand and limited supply.
To date, Avanath has acquired or has under control 16 properties with 3,234 units within the fund, totaling $387 million in investment equity.
“These assets are closely aligned with our investment thesis, and we plan to continue to deploy capital into many high-cost markets across the U.S. over the course of the year,” said Williams. Irvine, California-based Avanath, a privately held, vertically integrated investment firm, currently has more than $2.5 billion in assets under management totaling 88 multifamily communities and more than 11,000 units.
To date, Avanath has acquired or has under control 16 properties with 3,234 units within the fund, totaling $387 million in investment equity.
“These assets are closely aligned with our investment thesis, and we plan to continue to deploy capital into many high-cost markets across the U.S. over the course of the year,” said Williams.
Irvine, California-based Avanath, a privately held, vertically integrated investment firm, currently has more than $2.5 billion in assets under management totaling 88 multifamily communities and more than 11,000 units.
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