Virtus Raises $408M to Execute Cycle-Resilient Investment Strategy

July 19, 2017

Limited partners include pensions, endowments, foundations and high net worth

Overall commitments exceed initial target

AUSTIN – July 19, 2017 — Virtus Real Estate, LLC (“Virtus”), an industry leader in alternative real estate property types, announced today that it has raised total commitments of $408.5 million to execute its cycle-resilient opportunistic strategy.  Of that amount, $308.5 million is committed to Virtus Real Estate Capital II, LP (“VREC II”), and $100 million to a discretionary separate account. The capital raise, launched in late 2015, had a targeted close of $400 million.

VREC II’s strategy is consistent with Virtus’ proven approach of investing in US property types that Virtus believes can sustain their income stream and value, even in the face of a recession or a decline in general real estate values.  Examples of Virtus’ target property types include student housing, senior living, medical office buildings, self-storage facilities, and workforce housing. These property types benefit from major long-term demographic and economic trends, such as the aging of the baby boomer generation, the coming of age of millennials, as well as certain inuring societal needs.

“Exceeding our fundraising goals is a testament to the strength of our investment value for both institutional investors and high net worth individuals,” said Terrell Gates, Founder and CEO of Virtus. “Our stakeholders trust Virtus as a tested manager who has and will continue to deliver high quality returns across all market cycles.”

As new capital continues to flow into these property types, today’s real estate environment demands a skilled manager.  “Knowing which deals to avoid is equally as important as knowing which deals to seek.  Likewise, it pays to be hands-on and more local in these more operationally intensive property types.” said Robert Schweizer, Chief Investment Officer at Virtus.

VREC II has already made 12 property investments across six states totaling $116.5 million of equity.

About Virtus

Virtus Real Estate Capital, LLC, founded in 2003, brings thoughtful stewardship to the practice of real estate investment by delivering non-correlated alpha via cycle-resilient real estate.  Over the last 14 years, Virtus has acquired 200 properties for a combined acquisition value of over $3.2 billion, and has fully realized 157 property investments.  With a strong and established track record, Virtus has proven to be successful in all phases of the market cycle.  For more information, please visit www.virtusre.com.

Disclaimer

This communication is not an offer of any security nor the solicitation of an offer to purchase any security.