LIHTC Multi-Investor Fund Activity

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Boston Capital is on the street with a $157 million national multi-investor fund (7% projected yield) that is fully specified in properties and expected to close by March 31, after closing a $150 million national multi-investor fund (6.20%) in the fourth quarter of 2012, said executive Jeff Goldstein.

Boston Financial Investment Management planned to roll out a new $125 million national multi-investor fund (probable 7% yield) by early February, with a likely closing of the fund in mid- to late-summer, said executives Sarah Laubinger and Todd Jones.

City Real Estate Advisors, Inc. launched a national multi-investor fund in mid-December that is expected to close by March 31 at a final size of around $125 million, according to executive Tony Bertoldi. The fund will invest in 25 properties in 16 states and the U.S. Virgin Islands. The fund has two investment classes with different yields: Premium (7.30% IRR) for investors investing $25 million or more; and Class A (7.05%), for investors investing a smaller amount.

Enterprise Community Investment, Inc. closed a $115 million national multi-investor fund (6.25%) and a $45 million California green fund (4.75%) near year-end 2012, according to executive Raoul Moore. Enterprise plans to put back out a Pacific Northwest fund and a new California fund in the second quarter. Each is expected to be about $50-60 million in size; projected yield hasn’t been set. Moore anticipated that Enterprise will roll out a new national fund of about $100 million probably in the third quarter.

National Equity Fund, Inc. might do three regional multi-investor funds in 2013 instead of a national multi-investor fund, said executive Joe Hagan. He said NEF has launched Pacific Northwest and California multi-investor funds of about $35 million each, and might come out with a Midwest multi-investor fund.

R4 Capital, Inc. is winding up its first national multi-investor fund (7% yield) and hopes to close it out above $100 million, said executive Marc Schnitzer. The company also planned by mid-January to begin marketing a new national multi-investor fund (yield TBD) that will likely be $125 million in size. Schnitzer said R4 Capital will roll out a roughly $50 million California fund by the end of January. The company plans to come out with one or two additional multi-investor funds in the second half of 2013, possibly a small national fund and potentially a New York fund.

Raymond James Tax Credit Funds, Inc. recently closed a $150 million national multi-investor fund (blended yield 6.80%), and is marketing a $65 million California fund (5% IRR) that is expected to close in April, said executive Steve Kropf. The company plans to launch a new $200 million national multi-investor fund in the second quarter.

RBC Capital Markets’ Tax Credit Equity Group closed a $110 million national multi-investor fund (6.50% yield) on October 30, and will be launching a new $135 million national fund (7.25-7.50%) that is fully specified in properties by January 31, according to executives Craig Wagner and Tony Alfieri.

Red Stone Equity Partners closed a $65 million national multi-investor fund (7% IRR) in November 2012 that is investing in seven properties in six states, said executive Ryan Sfreddo. The company expects to roll out a new national multi-investor fund later this year.

Stratford Capital Group is on the street with a new national multi-investor fund (7.5% yield) that is expected to raise $100-125 million, according to executive Ben Mottola.

The Richman Group closed out a national multi-investor fund at $186.5 million (6%) in the fourth quarter of 2012, and is out with a new national multi-investor fund of about $100 (7.25%) that may close by March 31, said executive Stephen Daley.

WNC & Associates, Inc. recently closed a $124.5 million national multi-investor fund (7% IRR) and $4.7 million Hawaii multi-investor fund, according to executive Michael Gaber. The company has launched a new $75 million California fund and plans to roll out a new national multi-investor fund with a target size of $100 million (7% IRR) in February.