Carroll to boost direct investing

Atlanta-based Carroll Organization is ramping up its direct real estate investing activities, hiring former Goldman Sachs investment advisor Michael Patrick to lead the push. In the newly created position of vice president of capital markets, Patrick will be responsible for the firm’s fund management platform.

Patrick told PERE that Carroll created his position in response to increased demand from high net worth individuals and other investors in the personal networks of Carroll executives. The firm needed a platform to allow the individuals to invest alongside it or as joint venture partners. Patrick started in the position on March 10.

“We are working to build a dynamic platform that provides us the flexibility to change with the demand we see in the market place. We’ve seen increased interest in our funds, but new joint venture partners and investors looking for separate accounts are approaching us as well,” Patrick said. “We will continue to evaluate each structure so we can provide our partners the investment vehicle they want.”

Prior to joining Carroll, Patrick worked with Goldman Sachs in the firm's Investment Management Division for almost four years.  His team managed over $700 million in client assets and focused on institutions, endowments, family offices and high net worth pools of capital. He also advised clients on strategic asset allocation, portfolio construction, risk management and manager selection.

“Michael is extremely talented and well-respected in the industry,” said Carroll chief executive M. Patrick Carroll in a statement. “Over the past year, we have experienced significant interest in investing directly with us and Michael will facilitate this as well as further build our growing and fully integrated platform. We believe the current environment will continue to provide increasingly attractive opportunities for value-add investment going forward.”

Currently, Carroll is in the market with its third value-added vehicle, Carroll Multifamily Real Estate Fund III. PERE reported last June that the fund was targeting $250 million to invest in multifamily assets in the US, with a focus on properties in the Southeast and Texas. However, due to the current fundraising environment, Carroll chose to lower Fund III’s target to $50 million in order to close the fund earlier. The vehicle held a first close two weeks ago on $7.5 million.

In March 2013, Carroll received its first separate account mandate, forming a $100 million account with an undisclosed institution to invest in Class A and B+ multifamily real estate throughout the Southeast and mid-Atlantic regions within the US. Carroll has done four deals through the mandate thus far.