Interstate Equities Corp. (IEC), a Los Angeles-based institutional-fund manager and value-add investor, has completed the final close of its fifth institutional fund, IEC Institutional Fund V.
The fund raised $445 million in equity commitments and was oversubscribed, surpassing its initial hard cap of $400 million seven months after hitting the market.
IEC said Fund V had a 98-percent reinvestment rate from the predecessor fund, IEC Institutional Fund IV, which closed in 2018 with $300 million of equity commitments. Institutional investors and a few special new investors backed the newest fund.
Fund V will invest in acquiring, renovating, and repositioning value-add multifamily properties across California and Washington. IEC typically targets dated multifamily apartment properties and transforms them into modernized, boutique-style assets at attractive price points.
“The ability to raise this capital and surpass the initial hard cap, amid the pandemic,
