Brookfield-based MLG Capital has opened its sixth private real estate investment fund with an equity raise goal of $400 million. Dubbed MLG Private Fund VI, this is the firm’s largest fund to date. MLG’s last real estate investment fund, Fund V, had a raise goal of $300 million and ended up capping off at $350 million. Fund V closed last month, 15 months ahead of schedule.
“Our unique sourcing strategy for investment opportunities in a diversified fund structure has led to superior performance within the alternative private real estate space,” said Tim Wallen, principal and CEO of MLG Capital. “We also have a major focus on creating significant income tax benefits and producing strong after-tax rates of return for our investors. We take great pride in the continued interest and trust from our investors, and we are excited about the opportunity to find smart real estate deals across the country for Fund VI.”
Private Fund VI continues the firm’s focus on geographic, asset class and asset type diversification for investors. It targets 25 to 30-plus investments located in markets and locations where the company can grow the operating income of the property. Under its current growth strategy, MLG Capital aims to open a new fund offering every two years.
MLG has also committed up to 10% of the total capital raised within Private Fund VI to their Making a Difference Initiative (MAD), which launched in October 2021. This allows investors to donate a percentage of returns to one of six charitable donations.
“Part of MLG’s overall mission is ‘Making a Difference, While Making a Living’ and the MAD Initiative is anchored in that desire,” said Wallen. “We were pleased with the interest in the MAD Initiative through Private Fund V and are proud to expand the program with our newest fund.”
MLG has added more than $283 million of assets in the first quarter of 2022 and closed eight deals.