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MLG Capital preps to close an investment fund, launch another

May 6, 2016, 5:00am CDT

With deals lined up to inject money into 4 million-plus square feet of building purchases in multiple states, MLG Capital is preparing to close down its current investment fund and launch another this summer.

The Brookfield-based company is making connections with developers across the country to line up apartment, industrial and office real estate investment opportunities for its funds. The latest
deals will have the fund putting money into property purchases in Dallas; Memphis, Tenn.; and Wisconsin with a combined 2,776 apartments and 1.3 million square feet of commercial building space.

Those deals will cap off the acquisitions by a $50 million fund the company created in late 2014, said Timothy Wallen, MLG Capital’s CEO. But there are more potential deals, and more interest from investors who put money into the funds, so MLG Capital intends to launch a new, larger one in August, he said. The dollar amount for that fund has not been nailed down, he said.

It will be MLG Capital’s third fund under its current business strategy. The company raised $77 million from investors for the first two. The idea for the business model came in the wake of the recession, Wallen said. “It was a crazy cycle, so it made you reflect on how you could do this business better, smarter,” Wallen said.

Instead of rounding up investors for one-off projects around a single property ,MLG Capital’s funds put money into, and pull returns from, several types of property in different communities. The company has been traveling around the country to make connections to find those deals, Wallen said. It receives about 50 pitches a month, and will actually invest in one or two, he said.

Sean Ryan

Reporter

Milwaukee Business Journal

 

Link to Article: http://www.bizjournals.com/milwaukee/print-edition/2016/05/06/mlg-capital-preps-to-close-an-investment-fund.html?s=print