Trinity Fund Advisors LLC, an affiliate of Trinity Real Estate Investments LLC, has closed the Trinity GP Fund I LP, the firm’s inaugural U.S. discretionary commingled real estate fund. The fund was oversubscribed and raised a total of $520 million, significantly exceeding its $315 million target.
The fund’s investors include a wide range of institutional investors; sovereign wealth funds; domestic and international family offices; and high-net-worth individuals. The capital commitments make the fund one of the largest U.S. hospitality focused real estate private equity funds targeting value-added investments in upscale and luxury resorts and hotels in the U.S.
“Closing our inaugural U.S. discretionary commingled fund represents an important milestone for Trinity as it continues our evolution from a deal-by-deal investor to a global fund manager,” said Sean Hehir, managing partner/president/CEO, Trinity. “We are grateful for the outsized investor demand this vehicle received, which is a testament to the compelling market opportunity and the reputation we’ve built over the past 25 years.”
Through the GP structure, which invests limited partner capital alongside the fund, the fund brings more than $2.6 billion of capital to invest in debt, preferred equity and traditional equity positions that meet the fund’s strict underwriting criteria. In addition, based on the strength of Trinity’s pipeline, the firm expects to generate significant co-investment opportunities for its strategic partners over the next three years. The fund will leverage Trinity’s longstanding industry relationships, established platform and track record of investing across all market cycles to acquire a portfolio of hotels primarily in the top 25 U.S. markets, according to the company. Trinity believes the current dislocation in the hospitality market presents unique opportunities over the coming years to acquire upscale and luxury assets at discounts to intrinsic value and produce outsized returns for its investors.
“The current environment is highly conducive to the fund’s investment strategy and the skillset our team has refined over the course of our respective careers,” said Lee Neibart, chairman/senior partner, Trinity. “We look forward to leveraging our competitive advantages to source and execute transactions that are capable of delivering attractive risk-adjusted returns to our investors.”
Daniel O’Donnell, global head, Citi Investment Management Alternatives, whose team selected the fund for distribution to Citi’s global private banking client base, said, “The fund was extremely well-received by our client base globally, exceeding our target fundraise expectations. The strong global interest levels for this offering speaks to the relevance of the strategy in today’s market environment and the strength of the Trinity team.”
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