Brookfield-based
MLG Capital has surpassed its fundraising goal for Fund V with $350 million worth of investments. Fund V, a commercial real estate fund,
opened in January of 2021 with an equity raise goal of $300 million.
“Fund V exceeded our expectations in both the amount and speed of the equity raised. We consider this achievement a true testament to the trust our investor family has in us, and it fuels our ongoing commitment to them,” said Timothy Wallen, CEO of MLG Capital. “The outlook for private equity real estate investing remains strong in today’s market environment and we are excited to continue to transact on smart deals that provide value to our investment partners outside of the public markets.”
Acquisitions and pending acquisitions in Fund V are currently diversified into more than 7 million total commercial square feet of property, inclusive of over 6,700 multi-family units. The fund’s investments span 14 states by way of 27 deals, adding to the MLG Capital portfolio of real estate investments across the country.
Up to 10% ($30 million) of Private Fund V has been earmarked for the firm’s Making a Difference (MAD) Initiative. The six beneficiaries of the MAD Initiative are SecureFutures, Milwaukee College Prep, St. Marcus School, Augustine Prep, Dr. Howard Fuller Collegiate Academy and Lifesong for Orphans.
“This program allows investors to maintain their current investment and retirement strategy, while contributing a portion of their returns to deserving organizations that will make a difference in our community,” said
Jade Hendricks, investor relations associate and board chair of MLG Cares.
According to a press release from the firm, MLG will continue investing in deals with diversity in geography, asset class and asset types, and targeting tax-efficient income to investors via cash-on-cash distributions and appreciation over time.
MLG is planning to launch and begin accepting new investments into its next fund in early May. The next fund,
its sixth consecutive, will likely continue the firm’s focus on geographic, asset class and asset type diversification for investors.
For each of its private real estate funds, MLG targets 25 to 30+ investments located in markets and locations where the company can grow the operating income of the property. The firm focuses on investing in "smart deals" rather than setting a specific allocation to any asset class or geography diversification. It will continue to target tax-efficient income to investors via cash-on-cash distributions and appreciation over time.
David Binder, vice president of MLG Capital, previously told BizTimes the fundraising goal for the sixth fund would likely be above $300 million.
