LEM Capital, a Philadelphia-based real estate private equity firm, closed its fourth institutional fund at $300 million.
LEM Multifamily Senior Equity Fund IV will invest in Class B multifamily properties in US primary markets. According to the firm’s press release, LEM has already deployed 56% of the fund’s committed capital into 16 investments and will draw down the balance over the next 12-18 months.
The firm said that it expects the fund to acquire $1 billion in assets in total at 70% leverage.
Investors in Fund IV include the City of Philadelphia Board of Pensions and Investments at $25 million and the Pennsylvania Public School Employees’ Retirement System at $75 million.
The firm’s predecessor vehicle, LEM Real Estate High-Yield Debt & Preferred Equity Fund III, raised $226 million in 2012.