MSquared, a women-owned real estate investment and development platform, announced the $139 million first close of its Equitable Housing Solutions Fund II (EHSF II), which is targeting $250 million in commitments. The fund aims to finance more than $1 billion in new mixed-income housing, with capital raised from a mix of repeat and new investors, including anchor partner Citi Community Capital, alongside Bank of America, Trinity Church NYC, Capricorn Investment Group, and Deutsche Bank. 

EHSF II will prioritize ground-up development of mixed-income communities, combining market-rate and affordable units to capture investment benefits from both segments. The fund also differentiates itself by directing capital to women- and minority-led developers, who remain underrepresented in the industry. 

“By focusing on providing mixed-income housing in high-growth, high-cost areas, this fund both addresses the breadth of the affordability crisis and capitalizes on an investment opportunity not otherwise available in the private markets,” said Alicia Glen, founder & managing principal of MSquared. 

The fund builds on the success of EHSF I, a $200 million vehicle that invested in 14 projects now valued at over $1.5 billion. EHSF II has already deployed capital into developments in Dallas, Texas, and Everett, Washington, which together will deliver more than 500 new units. 

Pictured: Loma in Dallas, TX