Business Wire – September 20, 2015
NEW YORK–(BUSINESS WIRE)–StepStone Group Real Estate LP (“StepStone Real Estate”) announced today that it recently completed a $28 million investment in a portfolio of senior living, student housing, self-storage, and medical office properties managed by Virtus Real Estate Capital.
Virtus, based in Austin, Texas, was founded in 2003 and manages a series of funds focused exclusively on “recession resistant” property types across healthcare, affordable housing, education and storage. “We believe our strategy of investing exclusively in higher yielding cycle-resistant property types with value-add upside is especially relevant in this part of the cycle,” said Terrell Gates, founder and CEO of Virtus.
“In the Virtus transaction, we made a direct investment into a portfolio of senior living properties, alongside an investment into Virtus’ 2012-vintage fund, Virtus Real Estate Capital,” said Brendan MacDonald, a StepStone Real Estate founder and partner. “We think Virtus’ deep expertise and hands-on approach in these niche and operationally intensive product-types is unique,” said MacDonald, “and we look forward to exploring partnerships with Virtus on future opportunities.”
StepStone Real Estate is part of StepStone Group (“StepStone”), a leading private markets firm that oversees US$70 billion of private capital allocations, including approximately US$12 billion of assets under management. StepStone creates customized and targeted portfolios for the world’s most sophisticated investors using a highly disciplined research-focused approach that integrates primaries, secondaries, and co-investments across private equity, real estate, infrastructure, real assets and credit. It is a global firm with offices in Beijing, Hong Kong, La Jolla, London, New York, Perth, San Francisco, São Paulo, Seoul, Sydney and Tokyo.
Virtus Real Estate Capital was founded in 2003 to seek superior risk-adjusted returns by investing exclusively in property types aimed at offering greater resilience during economic downturns and enhanced upside through value-add as compared to traditional real estate property types. Over the last 12 years, Virtus has invested in 180 properties for a combined acquisition value of over $2.5 billion. Virtus recently launched its seventh fund, is headquartered in Austin, TX, and invests throughout the U.S.