Dome Equities, a New York-based private equity real estate firm, is said to be marketing its first commingled real estate fund, according to multiple people familiar with the matter.
Dome declined to comment, but PERE understands that the firm is seeking to raise $125 million for Dome US Multifamily Fund II. Dome, which focuses on core-plus and value-add US multifamily investments, is said to have launched the fund this month and expects to hold a first close on $35 million from its five largest existing investors within the next three months.
The firm, whose predecessor, NDC Capital Partners, was founded 16 years ago before its management team reorganized as Dome Equities in 2011, historically would show deals to multiple investors that would contribute a certain amount of capital in each transaction. Its investor base comprises high-net-worth individuals and family offices. Dome also has a $100 million separate account, Dome US Multifamily Fund I, with an overseas family office.
The fund would represent the first discretionary pool of capital for the firm, which in exchange would offer a lower fee structure and cross-collateralize its performance. Dome’s investors were said to have no longer wanted to approve every one of the firm’s deals, given the fiduciary responsibility and administrative burden involved, and therefore urged it to pursue a discretionary fund.
On behalf of the vehicle, Dome would acquire and reposition multifamily properties, with deal sizes typically ranging from $30 million to $50 million. The firm focuses on the 100 largest US metropolitan areas by population, with Denver, Dallas, Houston and Orlando currently making up the largest portions of its portfolio. Dome is said to be targeting a 14 percent net return for the fund.
Dome is led by chief investment officer Eric Jones, who previously worked at Citibank and GE Capital. At Citibank, Jones most recently worked on Citibank Private Bank's private equity co-investment platform and served as portfolio manager for the department’s first private equity fund. The private bank platform was the predecessor of Dome. The firm currently manages $350 million of equity and approximately $1.2 billion of assets, including 10,000 apartments across the US.