Initial Closing for $100 Million Fund Planned for January, 2015
Pathfinder Partners, LLC’s fifth opportunity fund will hold an initial closing in January, 2015, upon receiving in excess of the minimum investor commitments. Launched on October 27, 2014, the Fund is focused primarily on acquiring value-added multifamily and residential real estate in mid-tier cities in the western U.S., including San Diego, Denver, Phoenix, Seattle and Portland. Fund V has targeted raising $100 million.
Mitch Siegler, co-founder and senior managing director of Pathfinder, explained that since 2006, Pathfinders Partners has capitalized on opportunities present in acquiring distressed and value-add properties. Pathfinder expects Fund V to be the fifth in a successful string of investment funds that have added value by transforming below-the-radar properties quickly and profitably into winning investments for investors. Property upgrades, operational improvements and effective marketing strategies all contribute to Pathfinder’s prior successful investment performance.
The Fund’s focus is on properties in attractive locations in cities with diversified economies, growing populations, educated workforces, solid transportation systems and infrastructure and varied cultural and recreational activities. These properties are generally under-managed and under-capitalized. Pathfinder identifies the more desirable opportunities to optimize financial outcomes for investors.
Although returns can never be guaranteed, Pathfinder has consistently delivered attractive returns to a select group of investors. Fund V-A is anticipating an 18-20% gross and 12-14% net Internal Rate of Return within a 5-five to seven year time period. Within 24 months of final closing (expected to be December 31, 2015), Pathfinder expects the Fund to make 15-25 investments with equity investments ranging from $4 to $8 million.
Fund V may admit additional Limited Partners or accept increased capital commitments from existing Limited Partners through December 31, 2015 (the final closing date).