Origin Investments has corralled $90 million for its latest value-add vehicle, Origin Capital Fund III, PERE has learned.
The Chicago-based private equity real estate investor launched the fund in December 2015 with a $150 million target, more than twice the size of Fund II, and plans to wrap up fundraising in June.
The firm, formerly known as Origin Capital Partners, plans to invest in multifamily and office properties in eight US markets with growing populations and job markets, including Austin, Atlanta and Denver. Origin will deploy $10 million to $30 million per transaction, PERE previously reported.
“In 2016 Origin’s investment partners confirmed that they share our values and want to invest alongside a proven real estate investment manager,” Origin co-founder David Scherer told PERE. “During the year, Origin’s number of investment partners more than tripled, and we are poised to continue our exponential growth in 2017.”
Origin’s third fund has already started putting capital to work, and so far, the vehicle has posted a gross internal rate of return target of 17 percent to 19 percent with a 2x gross multiple, according to the firm. Fund II, which launched in 2013 and closed in May 2014 at $64.7 million, has acquired $335 million in assets and is expected to produce a 28 percent IRR and a 2.3x gross multiple once it is done investing, the firm said.
Origin’s investor base includes high-net-worth individuals, family offices and institutional investors. The firm had about 70 investors in its first two funds and now has 300, Scherer said. About 92 percent of Fund II investors committed to the latest vehicle. Co-founders Michael Episcope and Scherer also committed $10 million to Fund III.
Origin, founded in 2007, has about $600 million in assets under management.