R2 Capital Partners Announces The Closing Of $12 Million Equity Fund
Calgary, AB, August 1st, 2021 -- Building on its previous success, R2 Capital Partners Inc. has closed on its latest equity fund, R2F2 LP (Fund II), with commitments totalling $12 million in round one of two closings. R2's investment strategy for Fund II will remain consistent with their previous approach; value-add, purchase below replacement cost, and cash flow focused.
R2 will seek to generate superior financial returns by pursuing value-add opportunities and focusing on operational excellence through six geographically diverse strategies, three in Canada and three in the United States. In addition, the investment offers an array of diversity in asset selection ranging from traditional multi-family walk-up garden-style apartments and single-family homes.
R2's strategy is unique in that they target smaller generational assets that are not typically on the radar of larger firms; R2 then implements institutional value-add and "supercharge" their returns through utilizing technology.
Fund II's timeline is set for two years to deploy the capital, five years to implement value-add and operate, totalling seven years before exit, emphasizing returning the equity investment to its partners by year three. The expected AUM in year two is $80 million, which will consist of a cross-section of assets spanning from British Columbia, Canada, to Florida, United States.
In addition, R2's objective is to capitalize on the rapidly evolving real estate trends that have accelerated due to the pandemic, predominantly in the United States. The accelerated trends refer to the significant migration trend in the Southeast US, de-urbanization, de-densification and influential nesting trends.
With the announcement of the latest closing, R2 has hired three key positions to help reach its targets; these roles include a senior accountant, operations manager, and asset manager. Each position will play a critical role in the long-term growth and future success of R2 Capital Partners Inc.
R2 Capital Partners is a private real estate equity investment firm offering investors diversified exposure to residential and commercial real estate and utilizing a vast network of partnerships, relationships, and industry-leading technology to capitalize on emerging secondary and tertiary markets across North America.
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