Admiral Capital Group has collected $123 million for its second value-added fund, the firm said Tuesday.
The New York-based private equity real estate firm launched Admiral Capital Real Estate Fund II in October 2015 with a $175 million target, according to PERE data. The firm raised $100 million for its 2011-vintage debut vehicle. Fund I has generated a gross internal rate of return of more than 20 percent, while Admiral is targeting a mid-teens gross IRR for Fund II, PERE understands.
About 75 percent of Fund II’s commitments came from existing investors, including USAA Real Estate Company and the Teacher Retirement System of Texas, which earmarked $20 million for Fund II and $15 million for Fund I, according to PERE data.
The firm is investing Fund II capital in major US cities, focusing on multifamily and office assets with an average purchase price of $20 million-$70 million.
To date, Admiral has deployed about one-third of the vehicle’s equity in four properties. The acquisitions include Discovery at River Bend, a 256-unit Duluth, Georgia apartment building the firm purchased in a February 2016 joint venture with McCann Realty Partners for $24.8 million, according to data provider Real Capital Analytics.
The firm has committed to investing 10 percent of its profits to philanthropic efforts, specifically focusing on education, in markets where they invest.
“We have attracted deal flow and operating partners in large part due to our social mission, which creates a differentiated source of capital in a very competitive market,” co-founder Daniel Bassichis said in Tuesday’s statement.
Bassichis, a former Goldman Sachs executive, teamed up with David Robinson, a former NBA player and two-time Olympic gold medal winner, to found the firm in 2007.