Emet Capital launches new debt fund

Emet Capital Management, a private equity real estate firm that invests in distressed debt secured by affordable housing, has launched a new debt fund, Emet Municipal Real Estate Strategy II, according to a filing with the SEC. The firm did not comment on its fundraising efforts.

Emet Capital makes control investments in distressed debt secured by rental housing assets that qualify for municipal revenue bond financing. Emet seeks to purchase debt securities at a discount to face value, obtain control of the real estate, and then rehabilitate and reposition the assets to increase value. The real estate assets are typically within the subsectors of affordable multifamily housing, student housing, and senior housing, and exhibit asset and financial distress.

The fund’s predecessor, Emet Municipal Real Estate Strategy, held a $126.7 million final close in 2016.