Covenant Capital Raises $748M for Latest Apartment Fund

Covenant Capital Group, a real estate investment management firm, raised $748mn for its latest multi-family fund, Covenant Apartment Fund XI, far surpassing its target of $600mn and making it the largest raise since the firm’s inception in 2001.

The latest fund received commitments from more than 300 LPs, with more than 93% of the investors having committed to previous funds.

The fund’s strategy will be to invest over $2bn through a combination of equity and debt into approximately 40 to 50 apartment communities over the next three years, according to the firm.

“Our value creation efforts have allowed us to acquire and reposition over 245 apartment communities since 2001 with an aggregate value of more than $4.8 billion,” said Govan D. White, Managing Partner and co-founder of Covenant.

Led by Rick Scarola and White, the Nashville-based firm manages more than $2bn in assets focusing on value-add investments in apartment communities throughout the US southeast, southwest, and mid-Atlantic regions.