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CASE STUDY:
PRIVATE EQUITY FUND RAISE

After the funding of their first deal with Metropolitan Capital, the principals of a real estate investment firm were developing a real estate opportunity fund to invest in distressed commercial real estate and related debt obligations. The client was looking for the ability to act quickly on secured property and manage draw requests more efficiently. In conjunction with procuring a debt facility, the principals also wanted to raise $25MM for the fund.

Develop a flexible loan facility that was unique and customized to the needs of the client.  Additionally the client needed assistance in raising equity capital for their first blind real estate fund.


METROPOLITAN CAPITAL INVESTMENT BANC

The company was engaged to raise capital for the fund itself as well as for deals in which the equity investment is too large for the fund to handle individually. Based upon the client's strong credit performance and the belief in fund management, Metropolitan Capital Investment Banc negotiated a portion of the placement fee to be left in the deal in the form of equity. This equity would only be profitable if the fund is profitable for investors, thus aligning the interests of our investors with that of our own. Metropolitan Capital successfully raised capital commitments for the fund and continues to explore opportunities of funding for the fund on one off deals.

METROPOLITAN CAPITAL BANK & TRUST

Metropolitan Capital Bank & Trust developed a loan facility that allowed the fund to move quickly on their subsequent acquisitions. To enable the more efficient management of the funds' proceeds, the Bank developed a subscription line of credit that could be used to acquire properties in advance of making periodic capital calls under the fund.



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