- What Sophie Baran is launching a $50m private equity fund dubbed Bare Capital
- Why The former Landrex president is looking to pursue a diversified investment portfolio in Western Canada
- What’s next The fund’s final close is slated for December 2025
Sophie Baran, real estate industry veteran and former president of Alberta-based developer Landrex, is launching a diversified, social impact real estate fund, Green Street News can reveal.
The fund, dubbed Bare Capital, is aiming to raise $50m of equity and will have a diversified portfolio including multifamily, commercial, industrial and mixed-use properties as well as raw land.
“It’s a seven to 10-year fund, and lots can change in the economy over that time,” Baran told Green Street News. “But people always need places to rent, and industrial companies always need a warehouse, so it helps manage those ebbs and flows in the economy.”
The fund has a target yield of 17% to 23% and is soliciting investment from wealthy families, pension funds, insurance companies, First Nations and other private equity firms. The vehicle charges a 2% annual asset under management fee with an 8% hurdle rate and a 20% carry.
“People always need places to rent, and industrial companies always need a warehouse, so it helps manage those ebbs and flows in the economy”
sophie baran, bare capital
Bare Capital will be a discretionary fund, with an investment board overseeing investment allocation and ensuring a healthy diversity. Investments will be geographically diversified but will focus on Western Canada: British Columbia, Alberta and Saskatchewan.
The fund will use debt as part of its investment strategy. It will employ leverage of 60% to 75% on residential and commercial projects, but up to 90% on multifamily projects with an affordable housing component, thanks to incentives from the Canada Mortgage and Housing Corp.
Baran spent the last six years at Landrex, overseeing everything from land development to construction and financing. But more recently, she began looking for a way to pursue even more investment opportunities.
“I wanted to continue to grow our real estate portfolio and be quite aggressive in that market, and so, really, the decision was made to branch outside of Landrex and to start up a different source of capital to fund real estate growth,” she said.
Baran left her position at Landrex on April 30.
Bare Capital will have a “strong ESG component,” Baran said, and will look for ways to contribute and give back to local communities while generating returns for investors. The hope is that the fund will be part of the solution to Canada’s shortage of 3.5m housing units.
The fund’s final close is set for Dec. 31, 2025.