Covenant Capital raises $236m for Fund VII

The Nashville, Tennessee-based private equity real estate has held a final closing for its latest apartment redevelopment fund thanks to backing from existing and new investors.

Covenant Capital Group, the Nashville, Tennessee-based private equity real estate firm focused on apartment assets in the Southeast and Midwest of the US, has held a final closing on its latest value-added fund.

The firm announced it raised $236 million for its Covenant Apartment Fund VII fund at the end of December from institutional and high net worth investors, a mix of old and new investors. The minimum subscription for investors was $70,000, according to documents filed with the Securities and Exchange Commission (SEC).

According to the same SEC documents, Covenant originally targeted $300 million for the fund. Nonetheless, the fundraise brings the total equity raised by Covenant to more than $725 million since its inception in 2001.

Govan White, managing partner and co-founder of Covenant Capital Group, said: “We are very pleased to have received this vote of confidence from both existing and new investors. We believe the fund presents an attractive opportunity for investors to capitalize on compelling apartment investment opportunities in the current economic environment.”

The firm’s investment strategy is to acquire apartment properties and to redevelop them to an institutional investment standard with a view to generating a value added return.

The firm currently manages more than $515 million of equity invested over five funds and in $1.5 billion of apartment assets comprising more than 19,000 units.