Covenant Capital Group Raises Record $395M

Covenant Apartment Fund IX is the largest fund in the company’s 18-year history. The capital will go toward revitalizing recently acquired properties.

Covenant Capital Group has closed on the largest fund in the firm’s 18-year history. The investment manager closed Covenant Apartment Fund IX with $395 million of committed capital. Fund IX started with a target of $300 million.

Fund IX is 52 percent larger than Covenant’s prior fund, Covenant Apartment Fund VIII, which began acquisitions in 2015 and has fully invested all $260 million raised. With Fund IX, the company plans to invest more than $1.2 billion, including debt, in approximately 25 to 30 multifamily assets over the next three years. So far, the fund has already closed on or committed to 10 transactions, with more than $400 million in total capitalization.

“We’re proud to close on our largest fund yet with Fund IX,” said Govan White, managing partner & co-founder of Covenant Capital Group, in prepared remarks. “The increased Fund size is a testament to our apartment-focused, value-add investment strategy as well as the demonstrated ability of our team to execute.  We look forward to deploying this capital to revitalize properties acquired through Fund IX into premier, institutional-quality assets.”

One of the firm’s most recent transactions was the acquisition of a 379-unit Nashville community for $50 million in September.