Fenway Capital Partners opens first commingled vehicle

Fenway Capital Partners, a Boston-based private equity firm, has opened fundraising for its first commingled vehicle, Fenway Capital Partners LLC.

The firm is targeting $100 million for the fund with a return of 8 to 10 percent, according to a company statement. Fenway plans to invest in core-plus and value-add properties in Massachusetts and Florida in desirable core locations, deploying anywhere from $1 million to $20 million per investment. In addition to a $20 million co-investment, the firm is looking for high net worth individuals and pension funds to invest in the fund.

Fenway manages $39.5 billion in assets. The firm, which has previously used internal capital, was founded in 2004 under the name Lexicon Capital Partners and bought distressed properties in Massachusetts, Florida and New York. In 2011, the firm rebranded to become Fenway Capital Partners – no relation to Fenway Partners, a private equity firm that, earlier this week, settled with the US Securities and Exchange Commission for failing to disclose conflicts of interest.

Gary Kovner is the firm’s managing partner. Prior to Fenway, he founded Home Financing Centers, a Massachusetts residential mortgage banking operation that he sold to Family Choice Mortgage Corporation in 2003.

“Now that the market’s so hot, we’re looking to raise more funds and get more people involved,” Kovner told PERE.

He said there are opportunities, for example, south of Boston, where homes sit empty after the recession but commuters are seeking more affordable housing.