SAN FRANCISCO-643 Capital Management, a private investment firm focused on debt and equity strategies in distressed real estate, recently revealed it has left McKinley Partners. The new company is led by managing director Gregor Watson, co-founder of McKinley, and will be joined by Watson’s acquisitions team, which has an established track record of acquiring over 500 homes and plans to invest up to $200 million in the coming year. GlobeSt.com caught up with Watson to discuss where the company is focusing on investment and a little bit about how he finds the deal, or his “secret sauce,” as he puts it.
GlobeSt.com: Tell us about the decision to leave McKinley Partners, what that means for 643 Capital Management and what and how much you plan to invest in during the coming year?
Watson: Leaving McKinley allows me to focus on a very specialized asset class and recruit executive level talent into a specific strategy. It was a tough decision to leave and I have some great partners at McKinley. We have made fantastic investments together. The launch of 643 Capital allows me to take advantage of a great opportunity that requires specific talent at the senior management level. 643 Capital is built to provide a multi-strategy approach to non-core real estate. We will focus on mid-market investments where there is less competition at scale strategies like our single-family rental platform that allows us to deliver outsized returns due to inefficiencies in the market. We expect to invest between $150 million to $200 million over the next year.
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