Private equity firm, Ethika Investments, has launched a new real estate fund focused on opportunistic investments in the top 30 U.S. markets that will create value through significant renovations and operational improvements.
Named the Ethika Investment Diversified Opportunity Fund II, the platform is targeted to attract $250 million in equity capital from both new and existing investors, resulting in nearly $1 billion of new acquisitions over the next several years.
“Nearly six years beyond the last period of significant commercial real estate acquisition, now is an opportune time for Ethika to launch our second fund dedicated to seeking out value-add investments, with a focus on maximizing end values,” said Ethika Investments co-founder Andres Szita.
“These underperforming assets are still very well-priced with a great deal of upside potential, versus core real estate assets that have been overbought and overpaid for over the last several years.”
The launch comes on the heels of full deployment of Ethika Fund I, expected to deliver a net internal rate of return of 22.3 percent and a 2.1x net equity multiple to investors after investing in 17 properties across 13 different markets.