Close marks significant milestone for firm 11 years after strategic shift to real estate fund approach
Firm’s latest real estate fund – Private Fund VI – approaches halfway point fundraising milestone
Brookfield, Wis. (September 22, 2023) – MLG Capital announced a significant milestone for the firm with the sale of the last asset in MLG Private Fund LLC, “Fund I”, the first diversified fund in MLG’s series of real estate funds, established in 2012. Final distributions to investors, and formal closing, will occur in the coming quarters.
Fund I raised more than $27 million in investor equity, and throughout its lifetime acquired and sold 13 properties and seven land investments, totaling more than 3,000 multifamily units and nearly 585,000 in commercial square footage. Acquisitions were primarily located in Wisconsin, Florida, Texas, Minnesota and Colorado.
The closing of this transaction brought excellent returns for investors in Fund I and II. Overall, fund-level returns of 23.2% IRR and an equity multiple of 2.33X over the hold were achieved, as of 5/30/23.*
“From my first meeting with MLG back in 2011, I felt a sense of confidence and trust in doing business with them,” said Norb W., one of the initial Private Fund I investors. “Since that first investment, we have invested in all six MLG private fund opportunities and have received very rewarding returns that make us proud to be a partner with MLG.”
Fund I marked a significant strategic business shift more than a decade ago for MLG Capital, with the firm’s transition from focusing on individual deals to offering investors the opportunity to participate in a diverse portfolio of assets. The purpose of this structure was to enhance diversification and reduce investor risk while generating tax-efficient returns.
That strategy has proven successful for MLG and, since its original fund rollout in 2012, the firm has established five additional private real estate funds. Since 2012, the firm has acquired more than 43.6 million square feet in total commercial property, including more than 37,100 multifamily units. Under its current growth strategy, MLG aims to open a new fund offering every two years.
“The sale of our final asset in Fund I is an exciting milestone to mark, and we want to thank our Fund I investor partners for their trust in us and their early support,” said Timothy Wallen, CEO and Principal of MLG Capital. “With the dedication of our talented and tenured team and the confidence of our investors, we have been able to, not only achieve, but exceed our goals with this fund while also positioning ourselves for continued growth within the real estate landscape.”
Many investors reinvest their prior Fund liquidity to continue their diversification and optimize tax efficiency within private real estate. MLG’s latest fund, MLG Private Fund VI LLC opened in May 2022 with a targeted equity raise of $400 million. As of this month, the fund has raised over $176 million and has already invested in 13 assets across eight states, totaling over 2,680 multifamily units and more than 3.6 million square feet of commercial property. Investments into that fund are anticipated to close by -the earlier of December 2024 or its targeted $400 million equity raise.
“We are thrilled with the outcome of Fund I and the potential that exists with our current private real estate fund,” said Wallen. “Even in the midst of today’s volatile world, the outlook for private real estate investing remains strong and our team is hard at work executing smart deals that will provide value to our investment partners.”
*The figures above are subject to change based on final distribution and dissolution of the Fund.
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About MLG Capital
MLG Capital is the premier outsourced investment manager in private real estate for investment advisors, family offices and accredited high net worth individuals. Since its inception in 1987, the firm and associated entities have had active, exited, or pending investments totaling approximately ±43.6 million square feet of total space across the United States, inclusive of more than 37,100 apartment units, with exited and estimated current value exceeding $6.4 billion, as of 6/30/23. For more information about MLG Capital and its investments, visit the firm’s newsroom.
For more information, contact:
Katie Whitlock
Laughlin Constable Public Relations
kwhitlock@laughlin.com
414-305-5927
This release does not constitute an offer to sell an investment in a security. Offers to sell an investment in a security can only be made to a qualified purchaser by delivery of a Confidential Private Placement Memorandum (the “Memorandum”), any supplements to the Memorandum and accompanied by a Subscription Document Booklet. The information contained in this release may be preliminary in nature and may have not been independently verified by MLG Capital or its affiliates. The recipient of this release should consult with its own investment, tax and/or legal professionals about the merits of the investment. MLG Capital does not make any representation or warranty as to the accuracy or completeness of any information presented in this release. Any financial information or projections may be initial estimates and may be subject to change without notice to recipient. An investment into a private offering is subject to various risks, none of which are described herein. All figures as of 6/30/2023. Value consists of disposed of assets as well as the current internal valuation of currently held assets as of 6/30/2023. Values may not have been reviewed by an independent 3rd party and may be internal projections.
