US: Pretium, a specialised investment firm with more than US$50 billion in assets under management, has successfully closed its sixth single-family housing fund.
The fund and related vehicles closed above target with $1.5 billion in aggregate commitments, receiving “strong support from a diversified group of existing and new investors, including insurance companies, US pension plans, and US wealth managers”.
The fund invests in BTR single-family homes and communities in suburban markets experiencing above average population and economic growth. The growth in these key markets is primarily driven by US demographic trends fuelling demand in regions that offer warmer weather and lower cost of living.
Don Mullen, founder and CEO of Pretium, said: “We are pleased to close our sixth single-family housing fund above our target, which is a testament to the strength of our platform and provides us with more capital to keep builders building homes for families. This fund invests in growing the stock of quality single-family homes in key markets across the country, helping solve the tremendous shortage of viable housing in the US. Pretium has developed an integrated real estate ecosystem with the scale and expertise to capitalise on shifts in the market and expand access to quality housing that is resonating with investors, residents, and our communities.”
Josh Pristaw, Pretium’s head of real estate, added: “As a pioneering investor in the single-family housing industry, Pretium has a strong track record of driving performance and value creation by delivering access, optionality, and value to renters. We have seen a meaningful opportunity to put capital to work with our homebuilder partners over the last few years as regional banks have pulled back on financing and a high inflationary environment depresses supply. Investing in new housing supply and empowering builders to build more homes for families is a winning proposition in a market challenged by housing shortages.”
Since 2020, Pretium has invested more than $2.62 billion toward new build-to-rent construction in the US, creating more than 7,800 new homes across 37 cities and 15 states.
