Origin Investments Builds Fundraising Momentum

Michael Episcope of Origin Investments

CHICAGO— Origin Investments has hit a vigorous fundraising stride, raising between $1 million and $4.4 million per week for its third fund, according to company officials. A variety of sources have poured in capital, including current partners, new high net worth investors and family offices investing with Origin for the first time. “It’s exposure,” Michael Episcope , a cofounder of the Chicago-based private equity real estate firm, tells GlobeSt.com. “We have a great story and we’re getting it out there. Unlike a lot of newcomers, we have a track record.” Founded in 2007, Origin has generated net returns in excess of 25% across its first two funds, he adds. Funds 1 and 2 have outperformed 90% of peer group funds, which has led industry analyst Preqin to rank the funds as top quartile. Furthermore, 96% of Origin’s individual property investments have outperformed initial projections. As reported in GlobeSt.com, Origin and a partner recently sold Lux24, a 73-unit apartment building in Chicago’s West Loop, for $35 million, more than double what they paid three years ago when acquiring the former condo project out of foreclosure. The firm also sold Arium North Point in Atlanta, and achieved a more than 40% annualized internal rate of return. Both Episcope and cofounder David Scherer emphasize that they put a great deal of their own money into the firm’s investments. “That resonates with a lot of people,” says Episcope. “Other investors want to see that you have skin in the game.”       Overall, Episcope feels that potential investors are becoming increasingly comfortable with real estate. “Many are a little wary of the stock market,” especially after the Brexit vote sent it on a roller coaster ride. “It went down 1,000 and then up 1,000,” and even though that means prices recovered, “it’s the whipsaw that keeps people up at night. But real estate values weren’t touched by Brexit.”