Avanath Capital Management holds $388m final close

Avanath Capital Management has held a final close for both its Avanath Affordable Housing III and Avanath III NY Co-Investment Funds with $388 million in equity commitments.

“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,” said John Williams, Avanath’s president and CIO.

With this closing, Avanath has almost doubled its equity commitments from its Fund II, which had its final closing of at $200 million in July 2015.

“As the institutional community begins to more deeply understand the affordability crisis in the U.S., and as institutions continue to prioritize social impact investments, we will see continued increased activity in the affordable sector for years to come,” said Williams.

The 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.

“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,” said Daryl J. Carter, Avanath’s Founder, Chairman and CEO.

To date, Avanath Capital Management has acquired nine assets totaling $123 million under the funds, and has an additional four assets under contract, with closings scheduled over the next several months.

More than 50 percent of the total Fund III capital remaining to invest in additional affordable and workforce investments.

“We’ve already seen an increase in value by more than 11 percent 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,” said Williams.

Avanath Capital Management currently has more than $1.2 billion in assets under management totaling 42 apartment communities and 7000 units.