Sequoia Equities, a small California real estate investment firm, has launched a debt fund to target distressed construction and development debt across the US – and is asking investors to make their commitments upfront.
The Walnut Creek, California-based company is targeting the high-net-worth community as part of its efforts to raise $100 million for its SDV Distressed Real Estate Fund. However, in an effort to avoid delays in calling capital it is asking investors to make payments in advance.
It will also allow institutional investors, who cannot make upfront capital calls, to invest alongside the vehicle in joint venture-type deals. The fund is expected to have a life of just five years, according to sources, with an investment period of just three years. Sequoia declined to comment on the fund.
The vehicle is expected to target short to medium-term opportunities in the residential market, a sector which federal agencies are providing mass liquidity.
Sequoia Equities has traditionally been focused on multifamily acquisitions, according to its website.