Transwestern Investment Group (TIG) announced it has raised $200 million for TSP Value and Income Fund II, a real estate investment fund that will focus on current income while providing value creation.
At the final closing for Fund II, 40 percent of Fund II equity was already committed to seed assets.
Fund II is targeting a 12.5 percent or higher net IRR to investors, with a substantial amount of the return coming from current income.
“We are extremely pleased with our fundraising results, particularly the return of all our Fund I investors, as well as the addition of prominent new institutional investors,” said TIG Senior Managing Director Jennifer White.
“The resounding success of TSP Value and Income Fund I was a key factor in generating investor interest.”
TSP Value and Income Fund I was fully monetized in March 2019, achieving a 17 percent net IRR after fees, expenses and carried interest.
Fund I targeted property types that deliver strong current cash flow during the value-add process.
Fund II will continue a disciplined focus on generating meaningful current income while simultaneously targeting undervalued properties that will benefit from value-add activity.
TIG will utilize the Transwestern operating platform to transform the assets for higher future values through local market expertise, tactical capital investment and operational enhancements.
At this stage of the economic cycle, TIG’s focus for Fund II is expected to be industrial, multifamily and healthcare assets.
“Our fund strategy targets property types with limited capital expenditure profiles that can deliver significant cash flow during the value-add process,” said TIG Executive Managing Director Scott Fitzgerald.
“We are well-positioned to capitalize on the value-add opportunities we’ve identified in markets with strong economic drivers, supply constraints and liquidity to achieve superior results for our investors.”