Columbus, Ohio-based Red Capital Advisors, a unit of Red Capital Group, has launched a $100 million mezzanine and opportunistic real estate investment fund that emphasizes investment multifamily and seniors housing projects.
The internal series for Red Real Estate Fund I was closed; it will provide $50 million or 50% of the total investment capital. Equity for the internal series of Red Fund I was raised from the employees of Red Capital Group. The balance of the fund will be raised from third party institutional and private capital investors. Red Capital Advisors anticipates closing on the third party investment series in the first quarter of 2002.
"Though in the early stages, substantive conversations with several potential institutional investors are going very well. I am therefore, confident that we will close the third party investment series early in 2002," said John W. Adams, chairman and CEO of Red Capital Advisors.
Red Capital Advisors’ real estate investment and asset management professionals have managed more than $100 million in a similar fund while employed by a subsidiary of Bank One Corp. The fund, known as Banc One Capital Partners IV, generated an approximate 30% return on equity over the seven-year tenure of their management.