Private Equity Firm to Focus on 'Growing Secondary Markets'

Atalaya Capital Management, an alternative asset manager focused on private credit and special opportunities investing, announced the final close of its inaugural real estate private equity fund, Atalaya Commercial Real Estate Fund I (ACRE). 

The fund closed with more than $100 million, including commitments from new and existing investors and employees of the firm.

ACRE will primarily focus on control investments in real estate sponsor equity across multifamily, industrial, office and hospitality. 

In addition to providing capital, the Atalaya team will partner with developers and operators. ACRE complements Atalaya’s existing real estate strategies across real estate equity, preferred equity, construction financing, mezzanine financing and loan pool purchases.

A company release said the fund will “target opportunities alongside institutional-quality sponsors focused on growing secondary markets and gateway cities.”

“We’re thrilled to see support from both first-time and long-standing limited partners for our first real estate private equity fund,” Young Kwon, head of Real Estate at Atalaya, said in prepared remarks.

“Despite ongoing challenges presented by the pandemic, we made substantial progress in investing across multi-family, industrial, office and hospitality assets. We look forward to continuing this momentum.”

Atalaya manages more than $6 billion on behalf of a global institutional investor base.