Ethika continuing to raise capital on noncore fund
Ethika Investments has pushed back the final closing of Ethika Diversified Opportunity Real Estate Fund and will continue raising capital until June 2014. The move was confirmed by Dasha Holubec, investor relations manager with Ethika Investments.The fund, which launched in December 2012, has a fundraising target of $200 million, of which $83 million has been raised so far.
The fund will pursue a value-add/opportunistic strategy seeking middle market investments in corporate-driven, entry-level full-service hotels and class A/B+ office assets. Investments are expected to require $5 million to $20 million of equity capital and $20 million to $75 million of total capitalization, and will be made in the top 30 U.S. metropolitan statistical areas.
With the use of leverage, Ethika expects the fund to have approximately $600 million of potential buying power. Investors have included a number of private