Machine Raises $350M for Second Real Estate Fund
Real estate investment manager Machine Investment Group has held the final close of its second flagship fund, Machine Real Estate Fund II, hitting its $350 million hard cap alongside $120 million raised in parallel co-investment vehicles.
Fund II exceeded the firm’s 2022 inaugural fund, which secured $246 million in primary commitments and $208 million in co-investments. Backed by pension funds, endowments, foundations, and family offices, the vehicle targets middle-market real estate investments across the top 30 U.S. metropolitan areas.
Machine focuses on value-add, opportunistic, distressed, and special situations across the capital structure. Representative Fund II transactions include a special situations powered land asset in Pennsylvania, a distressed 539-unit residential property in downtown San Jose, a 229-unit senior living facility on Long Island, and a strategic investment repositioning a public entity into a data center platform.
“Reaching our hard cap in what continues to be a challenging fundraising environment, particularly for middle market managers pursuing a diversified strategy, is a milestone we do not take for granted,” said Eric Rosenthal, co-founder and managing partner of Machine Investment Group.
Incubation Capital Partners served as exclusive placement agent for Machine Real Estate Fund II. Kirkland & Ellis LLP served as fund counsel. Prospect Avenue Partners served as a strategic advisor to Machine Investment Group.
Machine Investment Group. Machine, founded in 2020 by former senior executives of Garrison Investment Group, now manages approximately $2.4 billion.
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