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EXCLUSIVE: Almanac raises $1.4bn for seventh fund

The New York-based fund manager exceeded the initial target for its latest offering in approximately a year.

Almanac Realty Investors has held a final close on its seventh property fund, Almanac Realty Securities (ARS) VII, collecting about $1.26 billion in equity and surpassing its initial $1 billion target. The New York-based entity-level real estate investment manager also raised an additional $160 million for co-investment sidecar vehicles.

Almanac officially launched the fund in May of last year, and amassed $577.52 million during the first close in October, according to filings with the US Securities and Exchange Commission. By December, the fund had attracted $974.8 million in commitments. Limited partners in the fund included the New Hampshire Retirement System, which designated $20 million; Pennsylvania Public School Employees’ Retirement System, which agreed to invest up to $100 million; and Illinois Municipal Retirement System, which pledged up to $35 million, according to documents from those institutions. 

“The Almanac Realty team is pleased with the closing of ARS VII, which finished well above our original goal of $1 billion and was primarily from investors in our previous funds,” said Matthew Kaplan, managing partner at Almanac Realty Investors. “We continue to identify real estate companies who can profitably utilize long-term, flexible capital to pursue their strategies and significantly grow their businesses through the acquisition, development or redevelopment of real estate assets.” 

Almanac invests growth capital in property companies that are active in the ownership, management and enhancement of real estate in the US. Fund investments typically are structured as convertible debt or preferred equity. The firm targets a net annual return of 12 percent or more and net investment multiple of 1.5x to 1.75x on its investments.

On behalf of ARS VII, the firm already has committed to invest up to $150 million in Mount Auburn Capital Group, a Los Angeles-based real estate company that acquires and manages multifamily assets in secondary markets across the US. Mount Auburn currently owns 18 properties with a total of more than 5,000 units.

Additionally, Almanac has earmarked up to $125 million for a national student housing company that is currently in the process of rolling up its real estate assets, management and development companies into one combined entity. The company will own interests in 17 student housing assets, and has acquired or developed more than 13,000 beds and $1.5 billion of student housing in 20 US markets.

Almanac was founded as Rothschild Realty Managers in 1981 but rebranded in December 2011 after its partnership with financial advisory firm Rothschild North America was dissolved. The firm raised its first fund in 1996 and to date has committed or invested more than $3.2 billion into 35 companies.