Ethika Launches $1B Diversified Fund

LOS ANGELES—Ethika Investments has launched a second diversified value-add fund, Ethika Investment Diversified Opportunity Fund II. The fund is expected to attract $250 million in equity investments from the firm’s pool of investors and from new investors, and will be used to purchase $1 billion in hotel, office and retail assets in 30 US markets.

“We have seen a lot of these opportunities continue to present themselves in the market,” Austin Khan, cheif investment officer at Ethika Investments, tells GlobeSt.com. “We first see these opportunities on a macro level between the general growth trajectory of the US market versus where real estate fundamentals are, and it feels like there are a lot of growth opportunities, in particular in the value-add and opportunistic space where we are executing a business plan at the property level that includes redevelopment and renovation, operational streamlining and restructuring. Those types of investment opportunities continue to have a strong track record with respect to risk-adjusted returns. Our investors, given the performance of our previous fund, are looking to continue to place capital with us and to find opportunities for real estate investments.”