New York-based Park Madison Partners today announced the final close of Mandrake Capital Real Estate Fund, LP (the “Fund”), with $268MM of total commitments. This is Mandrake’s first discretionary commingled fund, and limited partners include a diverse group of institutions, family offices, and high net worth individuals.
The Fund intends to pursue real estate investment opportunities with situational dynamics and capital market inefficiencies, which Mandrake believes provide opportunities to acquire assets at discounts to their fair or efficient value. The Fund’s investment parameters will be largely unconstrained, following a bottom-up approach with the ability to opportunistically source investments across property types, geographies, and execution strategies.
“We look for deals that don’t fit neatly within a standard ‘bucket,’ perhaps due to the property type, business plan, or misunderstood risk factors,” said Joseph O’Connor, Managing Partner of Mandrake. “We’re willing to do the work to find the hidden value in these deals, and historically that approach has paid off.”
“When COVID-19 hit, we had no way of knowing how real estate markets would be affected or what the world would look like once the pandemic was over,” said Park Madison Partners’ Rob Kohn. “But we were confident that Mandrake was the right manager for the times. They have a strong track record of being nimble and uncovering deep value opportunities across the risk spectrum. We are glad we had the opportunity to partner with them on this capital raise.”
As of the final close, the Fund had already committed $165MM of equity to eight investments across single-family build-to-rent, multifamily, office, and mixed-use real estate.
