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Houston-based Marble Capital has closed its fourth fund, securing another $816 million in capital commitments.
The most recent fund brings the local real estate investment company’s total capital raised to about $2 billion since its inception in 2016. It’s also the largest fund so far in the company’s history. The company closed its first fund of $100 million in 2017, its second investment fund of $250 million in 2019 and third fund of $650 million in 2021.
Marble Capital Fund IV and its associated co-investment vehicle is focused on making preferred equity investments in tandem with select common equity investments in multifamily developments across the country, the company said. As of the third quarter, the company has invested in more than 38,000 multifamily units representing $8.5 billion in capitalization. Marble Capital’s investments are spread across the Southwest and Southeast regions of the U.S. as well as the West and East coasts.
"We are thrilled with the overwhelming support provided by both new and returning limited partners," Adam Allen, Marble Capital’s co-founder and managing principal, said in a release. "With construction lending severely constrained, we believe our strategy is ideally situated to capitalize on today's dislocated capital markets."
Marble Capital said it built this most recent fund with a defensive strategy in mind. The company believes that it will be able to withstand rising interest rates, lower real estate valuations and decreased investment sales activity.
“In many ways, we view this as our golden moment from both an opportunity set standpoint and proof of concept as (Marble Capital Fund IV) positions itself to deliver profitable returns even in a down market," said David Oelfke, co-founder and managing principal.
Holland & Knight LLP served as outside fund counsel for Marble Capital Fund IV.
Last year, the company signed a definitive agreement to partner with Australia-based asset management holding company Navigator Global Investments. As part of the April 2022 deal, Navigator purchased a minority stake in Marble Capital and became a passive, non-voting minority partner. The total transaction size was $100 million, which Marble Capital said it would use for supporting near-term growth initiatives.
For that deal, Marble was represented by Colchester Partners LLC served as financial adviser and Holland & Knight as legal counsel. Sidley Austin LLP served as legal counsel to Navigator.
