Basis Investment Group closes first fund on $410m – Exclusive

The New York-based firm will target a variety of debt strategies with the oversubscribed vehicle.

Basis Investment Group has closed its debut commingled fund on $410 million, PERE has learned.

The New York-based real estate investment firm surpassed the target for BIG Real Estate Fund I, a US-focused real estate debt fund, by $10 million. It also has $800 million in fund-level leverage to deploy.

Founded in 2009, Basis has focused primarily on joint ventures and separate accounts, launching seven such vehicles during the past decade.

Basis will invest in core, core-plus and value-add properties as well as some opportunistic. It has made 20 investments through the fund in markets throughout the country. Chief executive Tammy Jones said the firm aims to achieve “equity-like returns for our investors as well as the downside protection of debt.” A spokesman for the firm declined to disclose the target returns for the vehicle.

Investors include public and private pension plans, investment management firms, financial institutions and sovereign wealth funds, PERE understands. Basis will use the fund to provide bridge and mezzanine debt, preferred and structured equity and make B-piece bond purchases for mid-market commercial and multifamily assets.

Fundraising has been strong for real estate debt strategies so far this year. PERE has tracked $15.18 billion in closings for such vehicles compared with $30.17 billion through all of 2018 and close to $40 billion the year before. Only six debt funds have closed in 2019, however, marking a stark decline from last year’s 46.