- What KV Capital has started fundraising for its second real estate investment fund
- Why The vehicle will focus on projects seeking $2m to $10m in equity
- What’s next The fund aims to raise $50m
KV Capital’s Real Estate Equity Partners launched its second investment fund, aiming to raise $50m.
The vehicle will continue the strategy forged by KV’s first fund, investing $2m to $10m of equity into so-called build and sell projects with two- to five-year horizons. It will invest across sectors, including residential, industrial and commercial, with experienced developers.
The fund targets an annual rate of return between 12% to 14%. It will return capital plus any profits to investors within five to seven years.
KV said April 25 that its first vehicle, KV RE Equity Partners Fund I LP, had committed all $46.5m of raised capital into projects in western Canada. That campaign kicked off in summer 2022.
Darin Rayburn, president of the Real Estate Equity Partners division, said the pace of commitment for the first fund was faster than expected.
“There is a growing demand in the market for this kind of partnership, both among developers and investors,” he said. “We are very proud of the relationships we established through Fund I and look forward to strengthening these and building new ones with Fund II.”
Fund I’s development partners include Anthem Properties, Apex Group, Avalon Master Builder, Slokker Homes, Troika Management Group, Whitemud Business Park and StoreWest Bluebird Partners.
Don’t miss out on the biggest stories from Canada – act now
During this launch period, Green Street News Canada is free to view. To continue reading articles after this period ends on July 8, click the button to inquire about a subscription, or adding Canada to your existing Green Street News subscription.