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ArcisCap closes first commingled fund

The New York-based firm raised $70m from Chinese investors for a real estate debt fund and is near closing another vehicle.

Arcis Capital Partners, a New York-based investment manager, has closed its debut commingled fund on $70 million, the firm said Wednesday.
 
The firm, which previously did deal-by-deal transactions since its April 2015 founding, raised $70 million from Chinese investors for ArcisCap-Celebration Pointe Investment, a real estate debt fund.
 
ArcisCap launched the vehicle in the second quarter of 2016 to raise capital for investing in senior secured and mezzanine debt for Celebration Pointe Holdings, a mixed-use project in Gainesville, Florida. The development will comprise 400,000 square feet of retail, entertainment and dining space; 300,000 square feet of office space; a 137-room hotel and 900 apartment units. PERE understands that the debt fund's investors are Chinese corporations.
 
“We believe our deep industry knowledge and experience, strong investor relationships and ability to structure complex cross-border investment transactions were integral to our success in raising the first fund efficiently,” Afzal Tarar, ArcisCap's founder, said in Wednesday's statement. “We are excited that we now have access to new pools of capital to deploy in compelling investment opportunities for our investors.”
 
Previously, Tarar was a partner at PwC, where he led the financial advisory firm's wealth and asset management, insurance and technology consulting practices across China and Hong Kong, according to his LinkedIn profile.
 
ArcisCap is also sponsoring several other real estate funds, it said in the statement. The firm is planning a year-end close for an unnamed combined real estate equity and debt fund that will invest in a $120 million student housing portfolio. The portfolio includes a mix of stabilized assets and development projects located in the southeast US. 
 
“Investing in such a portfolio, with a healthy mix of stable cash flow and upside through development, would allow our investors to achieve superior risk adjusted returns over a three to five year period, in a sector which offers very favorable dynamics,” Mohi Monem, the firm's head of real estate investments, said in Wednesday's statement.
 
NES Financial, a San Jose, California-based financial technology company, is the firm's fund administrator.