Targeting stabilized and transitional properties, distressed assets and recapitalizations, as well as selective development opportunities, to generate mid-teens net returns to investors
BOSTON (January 17, 2017) – The Davis Companies (TDC) has completed fundraising for its third discretionary co-mingled investment vehicle, Davis Investment Ventures Fund III, with $512 million in total commitments from institutional and high net worth investors. As with its prior two closed-ended funds, Fund III surpassed TDC’s initial fundraising target. Greenhill & Co. served as the exclusive global capital advisor to TDC.
Fund III continues TDC’s long history of value-oriented, opportunistic investing through both debt and equity investments in the U.S., with a focus on Northeast markets where the firm can leverage its substantial operating platform. In addition to direct investing exclusively for its own account, TDC looks for opportunities to joint venture with institutional capital providers on larger transactions where TDC can serve as the operating partner, as well as transactions in which the Fund can enter into partnerships with strong operators that are seeking equity capital, additional operating expertise and/or recapitalization and bridge financing. With leverage against its equity commitments, Fund III has the potential to acquire approximately $1.4 billion of real estate assets. Since the formation of Fund III in the fourth quarter of 2015, TDC has committed approximately $150 million in equity to ten investments.
“Our flexible, value-oriented investment approach to acquiring office, multi-family, light-industrial, retail, self-storage and hospitality properties has proven successful across multiple market cycles. The strategy of our third fund will focus on stabilized and transitional properties, distressed assets and recapitalizations, as well as selective development opportunities. We will apply our 40 years of experience to strengthening communities by contributing additional value to the built environment across the Northeast and beyond. During the last 40 years, we have built strong relationships with our investors and immensely value their loyalty and confidence in our judgment, strategy and execution,” said Jonathan G. Davis, CEO and Founder of The Davis Companies.
Since its founding in 1976, TDC has invested in more than 150 real estate-related assets, representing over 19 million square feet of commercial space, over 5,500 residential units, approximately $550 million of real estate debt instruments and securities and approximately $4 billion in gross asset value.
Jonathan G. Davis formed TDC in 1976. Under his and TDC President Richard McCready’s leadership, the organization has grown to be a vertically integrated investment, development and management firm with approximately 100 employees. TDC entered the real estate fund management business in 2009. Davis Investment Ventures Value Opportunity Fund I held its final closing in 2010 with $229 million of commitments. Davis Investment Ventures Fund II closed in 2012 on $413.5 million. Fund I and Fund II are both fully invested.
About The Davis Companies
Committed to excellence in both investment performance and operations, The Davis Companies is an integrated real estate investment, development and management firm headquartered in Boston that has invested more than $4 billion in gross asset value through real estate equity, debt, and fixed-income securities. A unique combination of capital markets, development and management expertise allows The Davis Companies to nimbly tackle complex and contrarian opportunities. Directly, and with its valued partners, The Davis Companies currently owns a real estate portfolio of approximately 12 million square feet across the Eastern United States.